The conversation delves into the valuation metrics for laundromats, covering topics such as Seller Discretionary Earnings (SDE), EBITDA, Free Cash Flow (FCF), and Net Income. It provides a comprehensive understanding of how these metrics are used in the valuation and assessment of laundromat businesses.

Takeaways

• Understanding laundromat valuation metrics
• Understanding seller discretionary earnings
• What metrics are best for laundromat valuations and why?
• Should I include assets in the valuation metrics when buying or selling a laundromat? 

  
  Link to graphic
  https://www.washdryfoldpos.com/laundromat-valuation-metrics/
  

00:00 Introduction to Laundromat Ownership

01:02 Public companies typically trade at a multiple of their earnings

02:50 Start with valuing the assets separately

04:49 Intangible Assets

05:56 Concentric Circle Chart of Earnings

07:48 Seller discretionary earnings

10:21 What is SDE and what does it include?

13:54 EBITDA vs. SDE: What to Use?

15:57 Free Cash Flow: A Banking Perspective

18:37 Net Income: The Final Metric

23:33 Conclusion: Mastering Valuation Metrics

24:59 Outro