Need Help? Broker Says 50 Times Net Monthly

[mw92101@yahoo.com]

Selling a laundry and broker says that 50 times monthly net is standard for sales in So Cal at this time--says was 60-70 a few years ago (i.e. prior to 2008). I know of another similar laundry that just sold for 68 times monthly net just a few months ago. What does the community think about these rules of thumb valuations, accurate or useless?

[CanCanCase]

I don't know the SoCal market well, but to me, these rules are just barely on the useful side of useless. Your store is worth exactly what someone is willing to pay for it. If you want more than what the broker suggests, list it for more... be prepared to deal with a bunch of low ball offers, and if a good offer comes along, hey... more for everyone!

Either way, be prepared to back up whatever your asking with real books, real utility bills (not billing statements) and be willing to show Mr. Prospective Buyer the business inside and out in detail to back up your claims of revenue.

Back to the rules of thumb - I would say they're pretty useless, but then again, having an "X times gross" or "X times net" number is - at the very least - a starting point to work from.

-Case

[mw92101@yahoo.com]

Thanks Case...I agree, I thought they were pretty useless too... just a way to compare sales and I know there aren't many buyers out there right now, so its not a good time to sell and valuations are low. Just didn't know if 50-55 monthly net sounded too low for this market. Any owners from Cali out there? I'd appreciate your help.

[chad]

Originally Posted by mw92101@yahoo.com

Selling a laundry and broker says that 50 times monthly net is standard for sales in So Cal at this time--says was 60-70 a few years ago (i.e. prior to 2008). I know of another similar laundry that just sold for 68 times monthly net just a few months ago. What does the community think about these rules of thumb valuations, accurate or useless?

Is your store in san deigo or in where?