Hamilton boiler

[Bob C]

I'm putting together a proposal on a L/mat in a rather quick fashion. Can anyone give me an idea on what a 4yr old 500k Hamilton boiler might be valued at? Appears clean ----just a close approx would be fine----

Thanks-

Bob C

[Kitty]

Not sure this will help, but Dave put in an evolution last year that wound up to be around 12K after replacing the old one with new plumbing and any electrical that was needed.

[Anonymous]

Bob, generally when purchasing an existing laundromat you are purchasing based on current and projected future cashflow as opposed to the value of equipment. You should put more time into getting a good estimate of cashflow than on trying to figure out if the boiler is worth 13K or 14K. I know it is natural to want to know the ratio of what you pay to what the physical equipment would cost, but this is a mistake. Used equipment sells for cents on the dollar - it has very little value unless being used to generate revenue.

[Lar Hylobates]

Bob,

The boiler could be purchased new for less than $4,000. The tank, pump system, installation, etc. easily approaches $12,000- $15,000.

Kirby is incorrect with his cents on the dollar theory as used equipment actually has NO value what so ever and typically becomes an expense to get rid of.

You will find the remainder of Kirby's post to be accurate.

Thank you for your attention to this matter.

[Anonymous]

Comon Stone, you agree with the concept - that was the key point to value the mat on cashflow not equipment value.

[Lar Hylobates]

Of course I do,

isn't that what I typed?

He did ask for the numbers though, not a reasoning of value.