How much does a business broker charge?

Business broker commissions range from 5–12% of the final sale price depending on deal size. Smaller businesses (under $1M) typically pay 10–12%, while mid-market businesses ($1M–$5M) pay 6–10%. Some brokers also charge an upfront retainer of $2,500–$15,000 for CIM preparation, which is usually credited back at closing.

How long does it take to sell a business?

Most small to mid-market business sales take 6–12 months from broker engagement to close. The stages include CIM preparation (4–8 weeks), buyer outreach and qualification (4–12 weeks), due diligence (30–90 days), and closing (2–4 weeks). SBA-financed deals add 30–60 days to the timeline.

What is seller's discretionary earnings (SDE)?

Seller's Discretionary Earnings (SDE) is the standard valuation metric for small businesses. It equals net profit plus owner salary, owner benefits, non-recurring expenses, and depreciation/amortization. SDE represents the total economic benefit to a single owner-operator. Most small businesses sell at 2–4× SDE.

Do I need a business broker to sell my business?

While you can technically sell without a broker, data consistently shows brokered transactions close at 15–25% higher prices and at higher completion rates than unrepresented sales. The exception is if you already have an identified buyer at an agreed price. In any other scenario, professional representation pays for itself many times over.

What is an IBBA-certified business broker?

The International Business Brokers Association (IBBA) is the professional body for business brokers. IBBA-certified brokers hold designations like CBI (Certified Business Intermediary) or M&AMI (Merger & Acquisition Master Intermediary), which require transaction history, continuing education, and adherence to a code of ethics. These certifications signal professional commitment and deal experience.

What is the difference between a business broker and an M&A advisor?

Business brokers typically handle Main Street and lower-middle-market transactions — businesses selling for $100K to $10M. M&A advisors operate in the middle market ($10M to $500M+) with larger teams, investment banking capabilities, and institutional buyer relationships. For businesses under $5M, a CBI-certified business broker is usually the right choice.

How to Sell a Laundromat

Selling a laundromat is different from selling most small businesses — buyers care deeply about equipment age, utility costs, and lease terms in ways that don't apply to a restaurant or retail shop. If you've never sold a business before, the process can feel opaque, but it follows a predictable path once you understand what buyers are actually evaluating. This guide walks you through every stage, from figuring out what your laundromat is worth to closing the deal.

What Buyers Are Really Paying For

When someone buys a laundromat, they're buying a cash flow stream — not a brand, not a customer list, and not your years of hard work. The core question every buyer asks is: how much money does this place put in my pocket each year after I pay all the bills? That number is called net operating income (NOI), and it drives almost everything else in the sale. Buyers also scrutinize the lease, because a laundromat with five years left on its lease is far less attractive than one with fifteen. Equipment condition matters too — a store full of machines that are eight to twelve years old will require capital investment soon, and buyers will price that in. Finally, utility costs (water, gas, electricity) are examined closely because they're the biggest variable expense in the business. Before you list, you need to understand your own numbers in each of these areas.

›Annual net operating income (NOI) — the single most important number
›Lease length and renewal options — buyers want at least 5–10 years of runway
›Equipment age and condition — machines over 10 years old raise red flags
›Utility costs as a percentage of revenue — typically 25–35% in well-run stores
›Location and parking — foot traffic and accessibility affect long-term viability
›Whether the business is attended or unattended — affects staffing costs and buyer pool

How to Value Your Laundromat

Laundromats are most commonly valued using a multiple of net operating income. In most cases, the sale price lands between 3.5x and 5.5x NOI, though well-maintained stores in strong locations with long leases can push toward 6x or higher. To calculate NOI, start with your gross revenue, then subtract all operating expenses: rent, utilities, supplies, labor, insurance, and any management fees. Do not subtract debt payments — NOI is calculated before financing costs. For example, if your laundromat generates $180,000 in gross revenue and has $100,000 in operating expenses, your NOI is $80,000. At a 4.5x multiple, that puts your asking price around $360,000. Some buyers and brokers also look at a multiple of gross revenue — often 1x to 2x — as a quick sanity check, but NOI-based valuation is the standard. If your books are messy or you've been running personal expenses through the business, a broker can help you reconstruct a clean picture of earnings before you go to market.

›NOI multiple range: typically 3.5x–5.5x, with premium stores reaching 6x+
›Gross revenue multiple: often used as a secondary check, typically 1x–2x
›Add back one-time or owner-specific expenses to show true earning power
›Equipment replacement reserves can reduce the effective multiple buyers will pay
›A formal business valuation from a broker or appraiser costs $500–$2,500 and is often worth it

Getting Your Financials in Order Before You List

Buyers and their accountants will ask for three years of tax returns, twelve months of bank statements, and a current profit and loss statement. If those documents tell inconsistent stories, deals fall apart. Start pulling these together at least six months before you plan to list. One common issue in laundromats is that owners underreport cash revenue — if your tax returns show significantly less income than your actual cash flow, you'll either need to explain the discrepancy convincingly or accept that buyers will only pay for what's documented. Another issue is commingled expenses: if you've been running your personal cell phone, vehicle, or health insurance through the business, those need to be identified and added back as 'owner benefits' on a seller's discretionary earnings (SDE) statement. A clean, well-documented SDE statement can meaningfully increase what a buyer is willing to pay, because it reduces their perceived risk. Ask your accountant to prepare one if you don't already have it.

›Gather three years of federal tax returns and twelve months of bank statements
›Prepare a current profit and loss statement broken out by month
›Document all owner add-backs: personal expenses run through the business
›Reconcile any cash revenue discrepancies before buyers find them
›Keep utility bills organized — buyers will want to see 12–24 months of history
›Have your lease agreement ready, including any renewal options or rent escalation clauses

Equipment: What to Fix, What to Replace, and What to Leave Alone

Equipment is the physical backbone of a laundromat, and buyers will either hire an equipment inspector or bring in a distributor to assess the machines before closing. You don't need to replace everything, but you should address anything that's visibly broken, frequently out of service, or nearing end of life. A washer-extractor that's been down for three months sends a signal that the business has deferred maintenance problems. On the other hand, replacing a perfectly functional 12-year-old machine right before a sale rarely pays off — you won't recover the cost in a higher sale price. What does pay off is getting everything running, cleaning the machines thoroughly, and having service records available. If you've been using a distributor for maintenance, ask them for a written summary of the equipment's condition — that documentation reassures buyers and can speed up due diligence. Payment systems matter too: stores that have already converted to card or app-based payment typically command higher multiples than coin-only operations, because buyers see them as more modern and easier to manage remotely.

›Fix any machines that are currently out of service before listing
›Compile service and maintenance records for all major equipment
›Card or app payment systems typically support higher valuations than coin-only
›Don't replace functional machines just before a sale — the ROI rarely works out
›Consider a pre-sale equipment inspection ($300–$800) to identify issues buyers will find anyway

The Lease: Your Single Biggest Deal Risk

More laundromat deals fall apart over lease issues than any other single factor. Buyers need confidence that they can operate the business long enough to recoup their investment, which typically means they want at least five to seven years of lease term remaining, including renewal options. If your current lease expires in two years with no renewal option, many buyers will walk away entirely — or offer a price so low it won't make sense to sell. Before you list, talk to your landlord. Find out whether they'll extend the lease or add renewal options. Many landlords are willing to do this, especially if you've been a reliable tenant. Get any lease extension in writing before you go to market. Also review your lease for assignment clauses — most commercial leases require landlord approval to transfer the lease to a new owner, and some landlords use this as leverage to renegotiate terms. Knowing this in advance lets you manage the process rather than being surprised during due diligence.

›Buyers typically want 5–10+ years of remaining lease term including options
›A lease expiring in under 3 years will significantly reduce your buyer pool
›Check your lease for assignment clauses before listing — landlord approval is usually required
›Negotiate a lease extension or renewal option before going to market if possible
›Document any verbal agreements with your landlord in writing

Should You Use a Business Broker?

Most laundromat owners who try to sell on their own underestimate how much time the process takes and how many deals fall apart during due diligence. A broker who has sold laundromats before knows how to price the business, where to find qualified buyers, and how to keep a deal moving when problems come up. They typically charge a commission of 8–12% of the sale price for businesses under $1 million, which is the range most laundromats fall into. That fee is real money, but consider what you get: access to a buyer database, help preparing the offering memorandum, screening buyers for financial qualification, and someone to manage the back-and-forth during due diligence. Not all brokers are equally useful for laundromat sales — a broker who primarily sells restaurants or retail stores may not understand how to present equipment age, utility costs, or lease terms to a laundromat buyer. When you're looking for a broker, ask specifically how many laundromats or coin laundry businesses they've sold in the past three years. BizBrokerMatch.com lets you filter for brokers who list laundromat or coin laundry experience, so you can start with candidates who have at least declared familiarity with this type of business.

›Broker commissions typically run 8–12% for laundromats under $1 million
›A good broker screens buyers for financial qualification before you spend time on them
›Ask how many laundromats the broker has sold — not just 'small businesses'
›Brokers with laundry industry contacts can find buyers faster than a general listing
›BizBrokerMatch.com lets you filter for brokers who declare laundromat experience

The Sale Process from Listing to Closing

Once you've prepared your financials, addressed equipment issues, and secured your lease situation, the active sale process typically takes four to nine months from listing to closing. Here's how it usually unfolds: your broker prepares a confidential business review (sometimes called an offering memorandum) that summarizes the business, its financials, and its asking price. Interested buyers sign a non-disclosure agreement before seeing the details. Qualified buyers then tour the store, review the financials, and submit a letter of intent (LOI) if they want to move forward. The LOI outlines the proposed price and terms and is usually non-binding, but it kicks off a due diligence period — typically 30 to 60 days — during which the buyer verifies everything you've represented. After due diligence, the parties move to a purchase agreement and then closing. Laundromat closings often include a training period of one to two weeks where you show the new owner how you run the store, handle vendor relationships, and manage maintenance calls. Build that into your timeline.

›Typical timeline: 4–9 months from listing to closing
›Non-disclosure agreement (NDA) is signed before buyers see financials
›Letter of intent (LOI) sets price and terms — usually non-binding
›Due diligence period: typically 30–60 days of buyer verification
›Expect a 1–2 week training period for the new owner after closing
›SBA financing is common for laundromat buyers — be prepared for lender scrutiny of your books

Common Mistakes That Cost Laundromat Sellers Money

The most expensive mistake sellers make is pricing the business based on what they need rather than what the financials support. If your NOI is $60,000 and you need $500,000 to retire comfortably, no amount of negotiating will bridge that gap — buyers will do the math and walk away. The second most common mistake is waiting too long to address the lease. Sellers often assume the landlord will cooperate once a buyer is in place, but landlords sometimes use that moment to demand higher rent or a personal guarantee from the new owner, which can kill the deal. A third mistake is failing to maintain confidentiality during the sale. If your employees, suppliers, or customers find out the business is for sale before a deal is signed, it can create uncertainty that undermines the business's value. Work with your broker to keep the listing confidential and use NDAs consistently. Finally, don't neglect the business while it's on the market — a drop in revenue during the sale process gives buyers ammunition to renegotiate the price downward.

›Price based on documented NOI, not on what you personally need from the sale
›Resolve lease issues before listing — don't assume the landlord will cooperate mid-deal
›Maintain strict confidentiality until a purchase agreement is signed
›Keep the business running at full capacity during the sale process
›Don't accept an LOI without understanding the due diligence conditions attached to it

Frequently Asked Questions

How much is my laundromat worth?

Most laundromats sell for 3.5x to 5.5x their annual net operating income (NOI). NOI is your gross revenue minus all operating expenses, not counting debt payments. A store with $80,000 in NOI might sell for $280,000 to $440,000 depending on lease length, equipment condition, and location. Stores with long leases, newer equipment, and card payment systems tend to land at the higher end of that range. Getting a formal valuation from a broker who has sold laundromats before is the most reliable way to set a defensible asking price.

How long does it take to sell a laundromat?

From the time you list to the time you close, most laundromat sales take four to nine months. Stores that are well-priced, have clean financials, and have a solid lease in place tend to sell faster. The due diligence period alone typically runs 30 to 60 days after a buyer submits a letter of intent. If your books are disorganized or your lease is expiring soon, expect the process to take longer — or to lose buyers during due diligence.

Do I need a broker to sell my laundromat?

You're not required to use a broker, but most first-time sellers find the process harder than expected without one. Brokers who have sold laundromats before know how to present equipment age and utility costs to buyers, how to screen for financially qualified buyers, and how to keep deals together when problems come up during due diligence. Their commission — typically 8–12% for businesses under $1 million — is real money, but it often results in a higher net sale price than selling on your own. BizBrokerMatch.com lets you search for brokers who declare laundromat experience, which is a useful starting point.

What if my lease is expiring soon — can I still sell?

A short lease is one of the biggest obstacles to selling a laundromat. Buyers need confidence they can operate long enough to recoup their investment, so most want at least five to seven years of remaining term including renewal options. If your lease expires in two to three years, your buyer pool shrinks significantly and your valuation will take a hit. The best move is to approach your landlord before listing and negotiate an extension or additional renewal options. Get any agreement in writing — a verbal promise from a landlord won't satisfy a buyer or their lender.

Will buyers care that my laundromat is coin-only?

Yes, increasingly so. Coin-only laundromats are harder to manage remotely, make cash reconciliation more difficult, and are seen by many buyers as a business that needs a capital upgrade. Stores that have already converted to card readers or app-based payment systems typically command higher multiples because buyers see them as more modern and lower-maintenance. If you're planning to sell in the next one to two years, converting your payment systems before listing is one of the few pre-sale investments that tends to pay off in a higher sale price.

Ready to find your broker?

Search BizBrokerMatch.com to find brokers who declare laundromat and coin laundry experience — then ask each one how many stores like yours they've sold before you commit.

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How to Sell a Laundromat: A Practical Guide for Owners