Oh hey there... so you wanna buy a laundromat?
I heard ya. SO - some of the tools we use to buy 'em.
Also remember - he who keeps it stupid simple wins. A thread on deal docs:
How do I know this isn't a lemon?
Oh that's a good q. You need a deal calculator.
Here's how we measure it. Super simplified but it lets you not waste time on sh*t.
It's not an IOU, it's an LOI (letter of intent):
Fancy way of saying, Hey Homie, I'd kinda like to buy your business.
BUT I'm not proposing, we're not exclusive, we're just dating. Cool?
Your biggest expenses in laundry land are:
- Water💧
- Rent🏠
It's the 80/20 rule. Control the 80% and you can handle some loss in the 20%.
Getting due "diligencey" with it (ugh, that was a stretch)
- DD is how we private equity peeps dig into deals to see if they will ROI well
- This is a sample of one of our sheets for analysis
*Sidenote: I LOVE TEMPLATES, makes it easier to never get emotional w/ a deal.
Sometimes biz owners lie about their profits (SHOCKING - I know)
- So if the tax returns don't match the profits, you go count quarters.. I honestly love this, it's so oddly rewarding stacking coin
Creating a P&L
- Basically - are you getting what you paid for, can you run it and profit, throw it into a spreadsheet and math wins.
Thought we'd get your beak a little wettttt on how these deals get done.
1st deal is always the scariest, then you realize deals at $100M or $100k rhyme.
It's not easy, they're called sweaty biz's for a reason. BUT it is doable!
Holler in comments if you want the full stack of deal docs.
Or go check out Unconventional Acquisitions...
You want these bad boys?
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