Preparing to buy a laundry!!

[newowner]

Hello all,

I am in the negotiation stage of purchasing my first laundry. I have located a laundry that is very appealing.
I have two questions:

1 - Is there any "equipment repair training" available for WASCOMAT and Maytag? I plan on doing my own repair.

2. When does equipmet age become a deciding factor in purchasing? Some of the equipment is aproaching 20yrs (WASCOMAT front loaders)

Thanks,
newowner

[Anonymous]

Wascomat has excellent repair training at their facility in Long Island. The courses are free, there is one on basic and a second one on advanced repairs.

You will get many answers regarding age of equipment. Remember when you are buying an existing business you are buying a proven income stream with the assumption that it will continue. You will have to make investments over time to upgrade equipment, but that upgrade should also attract more customers and increase your revenue.

[Anonymous]

Take a look back as many years as you can on equipment depreciation. Should give you a good feel for future capital expenditures you will need to save up for.
I've heard 95% of american businesses have annual capital requirements that equal their depreciation. Makes sense, right.
Having said that, you can keep almost any equipment running for decades. I've seen cheap junky toploaders go for 25 years. I expect to keep all my stainless steel front loaders going for at least 20 years, maybe 30 or so (or until the drum rusts through if it isn't SS.). But i plan to dump my toploaders after they start leaking around the seals.
From an investment perspective, i agree with the Kirbster. You are buying a future cash stream. 2X to 4X cash flow is usually reasonable. And the odds of your assumptions and calculations being correct will be far greater when buying an existing business rather than starting anew.

[pete f]

I learned how to fix alot of problems from my parts supplier. I would call him on the phone, explain the problem, he would tell me what is wrong, how to fix it, and send me the part. I also bought the service books to all my machines. Most stuff is simple when you come down to it. The big jobs on front loaders I hired out. Maybe we should start a thread,, the basic toolbox. Mine is quite simple, yet I can fix almost all common problems.

Equipment age is a factor in pricing a sale. The older the equipment, the less likley it will continue to produce the cash flow you are buying, therefore a lower cash flow to price ratio. There are other factors that could., and make the equipment, less a factor. Location, lease, overall demographics, impact fees can impact pricing. Many older mats get sold on 2-3 times cash flow.