Vertical Intelligence
Laundromat Acquisition
Intelligence Hub
Laundromats are often sold as "passive income" machines, but the reality is a high-CapEx game of utility efficiency and route density. Get the benchmarks you need to underwrite like a pro.
SDE Multiple
2.0x – 4.0x
Wider range than most verticals
Utility Cost %
20% – 30%
Water + gas + electric of revenue
Turns / Machine / Day
4 – 8 turns
Below 4 = underperforming
Lease Term Remaining
10+ years
SBA requires adequate runway
Machine Age & CapEx Risk
Equipment age is the single most common hidden variable in laundromat deals. Move the slider to see how machine age affects your risk profile and what to price in before offer.
CapEx Risk Assessment
Moderate — inspect maintenance records. Budget for a replacement reserve in valuation.
The Utility Efficiency Check
Older machines consume more water and gas per cycle. Front-load washers use ~40% less water than top-loaders. High-extract speeds (300G+) reduce dryer time and gas consumption. If the machines are old and utility costs are high, those two problems are almost always connected.
Front-load washers: ~40% less water than top-load
High-extract (300G+): significantly lower dryer energy
Variable frequency drives: reduce motor electric spikes
Revenue Intelligence
Revenue Line Quality
Not all laundromat revenue is equal. The mix determines SDE quality and how much you should trust the seller's P&L.
Self-Service (Coin/Card)
CoreThe primary revenue driver. Validate with meter readings, card system data, and bank deposits — never trust seller-reported figures on cash-heavy stores.
Wash-Dry-Fold (WDF)
MixedCan improve economics but is often labor-heavy. Require a fully-loaded labor cost analysis before treating WDF as additive to SDE. Many WDF operations are margin-neutral after real labor.
Pickup & Delivery (PUD)
MixedRoute revenue sounds great. It requires vehicle costs, driver labor, and customer retention — all of which buyers routinely undercount. Verify route profitability independently.
Vending / Ancillary
LowDetergent vending, ATM commissions, and similar add-ons. Usually 2–5% of revenue. Real but rarely material. Do not let sellers use these to pad SDE.
Deal Killers
Laundromat-Specific Red Flags
These are the issues that most commonly kill laundromat deals or destroy post-close cash flow for first-time buyers.
PERC Contamination
If the site was previously a dry cleaner, environmental contamination is a material risk. A Phase I environmental report is mandatory — cleanup costs can exceed the business value.
Lease Term Under 10 Years
SBA lenders typically require lease term plus renewal options to cover the loan term. Short lease runway often kills financing entirely — verify before LOI.
Utilities Above 30% of Revenue
Elevated utility burden usually means aging, inefficient machines or deferred maintenance. It compresses SDE and signals near-term capital expenditure.
Machine Age Over 10 Years
Equipment with less than 3 years of useful life represents six-figure capex the buyer absorbs. Get maintenance records and an equipment appraisal before final offer.
Cash Revenue Without Verification
Cash-heavy stores with no card system, meter data, or reconcilable bank deposits cannot be verified. Unverifiable revenue is not underwritable revenue.
WDF Revenue Counted at Full SDE
Brokers often add WDF revenue to SDE without deducting real labor costs. Ask for a fully-loaded P&L on WDF independently — it frequently runs at break-even or below.
Unit Economics
What to Measure and What It Means
| Metric | Benchmark |
|---|---|
| Turns per machine per day | 4 – 8 turns |
| Utility % of revenue | 20% – 30% |
| Revenue per machine per year | Varies by market |
| Vend price (washer) | $3.00 – $5.50 |
| Washer-to-dryer ratio | 1:2 to 1:3 |
| WDF margin (fully loaded) | 0% – 15% |
| Repair & maintenance % of revenue | < 8% |
| SDE multiple paid | 2.0x – 4.0x |
Diligence Checklist
Pre-LOI Evidence Requests
Get these before LOI. Most can be requested without tipping your hand — frame them as standard due diligence items.
Request card system reports or meter readings for at least 12 months — do not accept seller-prepared turn counts
Pull utility bills (water, gas, electric) for 24 months and reconcile against volume
Get machine age, manufacturer, model, and service history for every washer and dryer
Verify lease: term remaining, renewal options, rent escalation clauses, and assignment rights
Check for PERC contamination if site has any prior dry-cleaning history — Phase I is mandatory
Request full WDF P&L with labor fully loaded — not blended into the store P&L
Reconcile bank deposits against card system data and reported revenue for the trailing 12 months
Confirm municipal water rate schedule and any planned rate increases
Verify coin vault access controls and cash handling procedures
Check for planned commercial development near the site that could affect parking or access
Foundation Intelligence
The Three Master Pillars
Every successful acquisition starts with these three fundamental concepts. Master the math and the risks before signing an LOI.
SDE Mathematics
Learn the formula for Seller’s Discretionary Earnings and how to normalize cash flow.
Due Diligence Red Flags
7 critical red flags that kill small business deals instantly during diligence.
Revenue Verification
How to verify business revenue without blindly trusting the seller’s P&L statements.