JSVLaundry
03-07-2002, 10:05 PM
I am in the process of purchacing my mother's laundromat. How could I get the estimated cost of the equipment?
She has 18 washers, 15 W74 doubles & 3 W124 triples.
She also has 8 Huebsch dryers, 30EG
All of the equipment was purchased in 1984 and are all in workable condition.
Thank you in advanced!
Howard
03-07-2002, 11:20 PM
18 year old equipment is worth next to nothing, depending on condition maybe less than that. What you are buying is the income stream of the business. Its your mother, just be fair.
I agree with Howard, the equipment is worth nothing. As for the business, you could go through a whole lot a formulas and hair pulling trying to figure out what the business is actually worth. As in all things in life that are for sale, the business is worth what You will pay for it. 1, 2, 3, times gross or net; some monster formula based on utility bills? It is your choice.
Do you have a relationship with a banker or financial analyst? They could take a look at you Mom's numbers and based on these numbers, give you an idea what the business is worth. Your Mom probably would no like the figure they arrive at though.
From a business standpoint, that is what anyone else should do. I personally would take issue with the fact that the equipment is as old as it is. Some updating of the equipment may need to be a consideration.
Now from a personal standpoint, the relationship between you two may provide insight to the business’s worth (cash flow) that only you two have. Hope this helps.
Good luck.
Trab