Multiple (Valuation Multiple)
A valuation multiple is the factor applied to normalized earnings to produce a business value. For laundromats it is usually stated as a multiple of SDE, and it encodes the market's view of risk, growth, and transferability.
Why Multiple Matters in a Laundromat Sale
The multiple is where evidence quality shows up as money. Across 855 reported laundromat sales for 2021-2025 the median earnings multiple was 3.50x, with the lower quartile at 2.72x and the upper quartile at 4.50x (Source: BizBuySell, 2021-2025). On the dataset's median earnings of $76,560, that spread is roughly $136,000 of purchase price on the same store.
Example
Two stores each produce $90,000 of SDE. One has eleven controllable lease years, card exports matching deposits, and no retool due. The other has four lease years and one revenue source. The first prices near 4.5x ($405,000); the second near 2.7x ($243,000).
What to Check
- Anchor to the closed-sale distribution rather than to asking prices.
- Score the store on lease, evidence, equipment, utilities, owner dependence, service mix, and competition.
- Write down which factors justify a multiple above the 3.50x median, and be ready to defend each.
Where This Comes Up
- Laundromat Valuation Multiples: The Closed-Sale Distribution
- What Increases Laundromat Value: 14 Premium Drivers
- What Lowers Laundromat Value: 16 Discount Drivers
Related Terms
- SDE (Seller's Discretionary Earnings) — SDE, or seller's discretionary earnings
- EBITDA — EBITDA is earnings before interest
- Cap Rate — Cap rate
- Goodwill — Goodwill is the value of a business beyond the fair market value of its identifiable assets: the customer base
See the full laundromat glossary for all 78 terms.
The Next Step
Sources
- BizBuySell, Laundromat and Coin Laundry Valuation Benchmarks, 2021-2025 closed sales — https://www.bizbuysell.com/learning-center/valuation-benchmarks/laundromats-coin-laundry/
This page is general information about laundromat transactions, not legal, tax, or investment advice, and not a guarantee of sale price, timing, or financing approval. Verify current rules with your own CPA, attorney, lender, and the relevant state or municipal agency before acting.