Rabenson Group · Deal File

High Volume Laundromat
Doraville, GA

Doraville, GA (DeKalb County) · BizBuySell #2491428 · 3 employees · $6,700/mo rent
Broker Celine Zeidan, Main Source Realty
CIM Requested Apr 11, 2026
Employees 3
Monthly rent $6,700
Price Negotiation Required
Listing snapshot
Asking price
$1.40M
Must negotiate down
SDE
$266,640
Verify addbacks in CIM
Revenue
$596,400
44.7% SDE margin
Ask multiple
5.25x
Ceiling 4.5x — FAIL
Multiple — primary issue
5.25x ask exceeds 4.5x ceiling — price must come down before LOI
Max price at 4.5x ceiling$1,199,880
Required reduction from ask$200,120 (14.3%)
Market comp range (Peak Business Valuation)3.16x – 4.23x SDE
Ask vs market top5.25x vs 4.23x — 1.02x above market
Structure comparison at ask — 90/10 vs 80/10/10
90/10 — SBA only (preferred)
No seller note. One debt obligation. SBA loan covers 90%, lower combined annual payment than 80/10/10.
SBA loan (90%)$1,260,000
Seller noteNone
Equity injection (10%)$140,000
Annual debt service~$156,000
Post-debt SDE$110,640
DSCR at ask1.71x ✓
Multiple at ask5.25x ✗
DSCR passes · multiple fails
80/10/10 — SBA + seller note
Seller carries 10% note (~5–7%, 5yr). Two debt obligations. Higher annual payment — seller note is shorter term than SBA.
SBA loan (80%)$1,120,000
Seller note (10%)$140,000
Equity injection (10%)$140,000
Annual debt service~$171,000
Post-debt SDE$95,640
DSCR at ask1.56x ✓
Multiple at ask5.25x ✗
DSCR passes · multiple fails
Why 90/10 produces better DSCR than 80/10/10
Seller notes run ~5–7% over 5 years — shorter term means higher annual payments per dollar borrowed vs. the SBA's 10-year amortization. More debt through SBA at 10 years costs less annually than splitting between two instruments. Tradeoff: 80/10/10 gives seller skin in the game post-close, a useful negotiating signal.
Market comps — laundromat SDE multiples (closed transactions)
Market floor · 3.16x
$266,640 × 3.16x = $842,582
Market midpoint · ~3.70x
$266,640 × 3.70x = $986,568
Market top · 4.23x
$266,640 × 4.23x = $1,127,887
Your ceiling · 4.50x
$266,640 × 4.50x = $1,199,880
Ask price · 5.25x
$266,640 × 5.25x = $1,400,000
Price scenarios — 90/10 structure (SBA only · preferred)
At ask
$1.40M · 5.25x
SBA loan$1,260,000
Equity$140,000
Annual debt svc~$156,000
Post-debt SDE$111,000
DSCR1.71x ✓
Multiple5.25x ✗
Multiple fails — no LOI
Target offer
$1.00M · 3.75x
SBA loan$900,000
Equity$100,000
Annual debt svc~$112,000
Post-debt SDE$155,000
DSCR2.38x ✓
Multiple3.75x ✓
Best structure · market midpoint
Walk-away
$1.15M · 4.31x
SBA loan$1,035,000
Equity$115,000
Annual debt svc~$128,000
Post-debt SDE$139,000
DSCR2.08x ✓
Multiple4.31x ✓
Above market · min acceptable
Price scenarios — 80/10/10 structure (SBA + seller note)
At ask
$1.40M · 5.25x
SBA loan$1,120,000
Seller note$140,000
Equity$140,000
Annual debt svc~$171,000
Post-debt SDE$96,000
DSCR1.56x ✓
Multiple5.25x ✗
Multiple fails — no LOI
Target offer
$1.00M · 3.75x
SBA loan$800,000
Seller note$100,000
Equity$100,000
Annual debt svc~$122,000
Post-debt SDE$145,000
DSCR2.18x ✓
Multiple3.75x ✓
Seller skin in game · solid structure
Walk-away
$1.15M · 4.31x
SBA loan$920,000
Seller note$115,000
Equity$115,000
Annual debt svc~$140,000
Post-debt SDE$127,000
DSCR1.90x ✓
Multiple4.31x ✓
Above market · min acceptable
Laundromat CIM diligence items
Key items to verify before LOI
Machine age and conditionCritical — deferred capex risk
Lease term remainingMust have 5+ yrs or renewal option
Utility costs (water/gas/electric)Typically 30–40% of revenue — verify
Revenue mix (self-service vs WDF)WDF = higher margin, more labor
Payment systemCard = better data, easier mgmt
Neighborhood demographicsDoraville high-density — stable demand
Green flags
44.7% SDE margin — strong for a laundromat (industry average 20–35%)
High volume designation — established customer base and utilization
Doraville high-density, immigrant-heavy market — laundromats are essential and recession-proof
Rent at 13.5% of revenue — reasonable for the market
3 employees — suggests WDF or attendant service, higher revenue per transaction
DSCR passes at ask under both structures — cash flow coverage is not the issue
Low equity injection — $100–140K depending on price and structure
Red flags
Ask multiple of 5.25x — 1.02x above market top, 0.75x above hard ceiling
SDE of $266,640 — below $300K minimum criteria; only works at significantly reduced price
Machine age unknown — deferred capex could crater post-close cash flow
Lease terms unknown — laundromat without long lease or renewal option is a non-starter
Yellow flags
SDE below $300K floor — works only if price reflects discount and capex risk is low
Utility costs not disclosed — water/gas/electric typically 30–40% of laundromat revenue
Single location — concentrated market and operational risk
Owner-operated — key-man dependency on systems and customer relationships