Open Forum

Due Diligence

  • 1.  Due Diligence

    Posted 01-25-2017 10:35
    Good Day CLA, I am having difficulty finding operations that have reasonable records to support their Net Income claims. How do you work through this? I am looking to acquire a store or three in the Miami area. 

    Mark Anthony
    Potential Investor
    Miami Beach FL

  • 2.  RE: Due Diligence

    Posted 01-26-2017 11:24
    I have utilized the services of an expert. Gary Ruff in New York charges a few hundred dollars to evaluate a laundromat (and even less for any subsequent evaluation of additional stores!)  His help has saved me HUGE!!  He has evaluated 4 stores for me and his advice has saved me $41000 on the purchase of 1 store and kept me from getting in to 3 others that were traps.

    Dave McCreary
    Store Owner/ Employee
    Sunshine Coin Laundry & Casselberry Laundry
    Winter Park FL

    [Casselberry Laundry]Sunshine Coin LaundrySunshine Coin LaundrySunshine Coin LaundrySunshine Coin LaundrySunshine Coin Laundry

  • 3.  RE: Due Diligence

    Posted 01-26-2017 13:30
    Hi Mark & welcome.

     I'm assuming based on your question that you are new to this industry? My apologies if you're not.

     If you are, I would strongly urge you to focus on the first location & understanding the business first. 

     You didn't state much. Besides you were having a difficult time establishing the facts. What have you done thus far? How many times. Have you been to the location? Same time or different times? What's the busiest day or time? Do you have copies or at least data from the utilities? Do you have or have you seen income tax statements? Have you been there when the owner pulls?

     The more data you gather on your own be it concurrent to your DD process or prior, the better it will help with your evaluation.

     Once you're done. With all that you have to factor your own experience or what you could do or bring to the business to see if it has potential or turn into a regrettable money pit.

     Good luck.

    Store Owner/ Employee
    Cocoa FL