Case Study: $925k Laundromat Acquisition

🧾 Overview

Target Company: [REDACTED], LLC
Industry: Coin & Card Operated Laundromat
Location: California
Acquisition Value: $925,000
Structure: SBA 7(a) Loan + Buyer Equity
Time to Close: 71 days from LOI to closing

🎯 Buyer Profile

The buyer, a former project manager in the tech industry, wanted to acquire a low-maintenance business with strong cash flow and minimal staffing. Their ideal target was simple, systemized, and recession-resistant. Eagle Dawn Capital was engaged to find, vet, and close a deal with minimal complexity and full financing support.

🔍 Deal Sourcing

This opportunity was sourced off-market through a proprietary laundromat outreach campaign. The seller, 12 years in, was ready to retire but didn’t want to list the business publicly. We secured a direct deal and moved to diligence within two weeks.

📊 Due Diligence & Deal Analysis

Annual Revenue (Trailing 12 Months): $790,598
Adjusted EBITDA: $237,179
Seller’s Discretionary Earnings (SDE): $277,179
EBITDA Margin: 29.5%
Multiple Paid: 3.90x EBITDA (semi-absentee), 3.34x SDE (owner-operator)

Key Strengths:

• Fully card-based POS and remote monitoring

• 28 high-efficiency machines <6 years old

• Strong customer base in dense rental corridor

• Long-term lease with fixed escalations secured pre-close

Risks Addressed:

• Verified 12-month utility history matched revenue claims

• All equipment owned outright, no liens

• Transition plan retained key cleaning staff

💰 Deal Structure

Total Purchase Price: $925,000
Financing Breakdown:

• SBA 7(a) Loan: $740,000

• Buyer Equity Injection: $185,000

• No Seller Financing (fully funded through SBA)

Loan Terms:

• 10-year amortization at 10.25% fixed

• 3-month interest-only period

• No lien on primary residence due to business asset coverage

🚀 Post-Close Support

Eagle Dawn Capital provided:

• Vendor transitions and automated supply ordering

• Rebranding guidance and signage upgrade

• Setup of mobile KPIs and remote management dashboard

• Coaching on growth via wash & fold service expansion

📈 Results

• Buyer operating semi-absentee with <3 hours per week oversight

• DSCR at close: 1.82x

• First 90 days saw a 6.5% revenue uptick via promo campaigns

• Projected Year 1 net income after debt service: $75K

📌 Key Takeaways

• Deal closed at 3.9x EBITDA, matching industry norms

• 29.5% EBITDA margin ensures healthy debt coverage