What a $200,000 Partnership Actually Looks Like

The Deal at a Glance

Silent Equity Partnership

Business Type Coin Laundromat

Location Southeast United States

Annual Revenue $420,000

SDE $148,000/year

Sale Price $370,000 (2.5x SDE)

Your Partnership $200,000

Your Ownership 54% equity stake

Structure Silent Equity Partner

Your Annual Return $79,920

Your Involvement Monthly P&L review

Year-1 Distribution Yield (gross)
~0%

Monthly Distribution
$0

This is a real composite deal based on transactions HedgeStone has brokered. The operator manages the business day-to-day. You own equity, receive distributions, and review a one-page monthly report. That's it.

Recession-resistant revenue. People need clean clothes regardless of the economy. Laundromats have operated through every downturn with minimal impact.

Predictable cash flow. Revenue is coin- and card-operated, meaning daily income with almost no accounts receivable or collection risk.

Low operator dependency. These businesses run with minimal staffing, which means lower overhead and less operational risk for a silent equity partner.

Your $200,000 represents 54% of the $370,000 acquisition price. The remaining 46% is covered by the operating partner, who also contributes their time and expertise to run the business day-to-day.

Your equity stake entitles you to 54% of the SDE distributions, which comes to $79,920 per year or roughly $6,660 per month.

How the Money Flows

$420K

Annual Revenue

→

$272K

Operating Expenses

→

$148K

SDE

→

$79,920
Your 54% Cut

SDE (Seller's Discretionary Earnings) is what the business actually puts in the owner's pocket after all expenses. It's the number buyers and partners use to value a small business. Not revenue. Not EBITDA. SDE.

According to BizBuySell's 2025 data, the median small business sells at 2.5x SDE. This deal is priced at market rate.

Rent/lease: The facility lease for the laundromat location.

Utilities: Water, gas, and electricity represent the largest variable cost in a laundromat.

Equipment maintenance: Regular servicing and parts replacement for washers and dryers.

Insurance, supplies, and misc: Business liability insurance, detergent vending supplies, and other minor operating costs.

What Could Go Wrong (And How You're Protected)

Risk	Mitigation
Business revenue drops	Structured as equity. Returns scale with performance, and equity can lose value or be lost entirely if the business underperforms - this is risk capital, not a guaranteed-principal investment. Laundromats tend to be relatively recession-resistant with predictable, recurring revenue.
Operator walks away	Operating agreement includes replacement clause. HedgeStone assists in finding a new operator. Your equity position remains intact.
Business needs to be sold	You own equity. Sale proceeds are distributed proportionally to your stake. Exit value depends on the sale price achieved and is not guaranteed - you may exit above or below your entry valuation.

We don't promise zero risk. We promise that every deal brought to BBC members has been vetted, structured, and documented by a team that has closed over $500M in business transactions.

The Timeline: From Check to Cash Flow

Week 1-2

Application reviewed, BBC membership confirmed

Week 3-4

HedgeStone presents matched deal opportunities

Week 5-6

Due diligence review (HedgeStone does the heavy lifting)

Week 7-8

Legal docs, operating agreement signed

Month 3

First distribution hits your account

Month 3+

Monthly P&L. Quarterly calls. Annual review.

Is This for You?

You have $100,000 or more in liquid capital ready to deploy
You want cash flow, not just appreciation
You don't want to manage employees, inventory, or operations
You understand that illiquid partnerships carry risk and that risk equals return
You're looking for an alternative to the stock market that you can actually understand

How HedgeStone Protects You

You don't source deals. You don't negotiate. You don't manage. Here's what HedgeStone does on your behalf:

Deal Vetting

Every opportunity goes through HedgeStone's full brokerage review before it reaches a BBC member.

Structuring

We build the operating agreement, equity split, and distribution schedule.

Ongoing Access

BBC members have direct access to HedgeStone advisors throughout the life of the partnership.

This is an illustrative example of how passive business partnering is structured. Figures are composite and hypothetical, not a record of actual returns.

Illustrative and educational only. This is not investment advice and not an offer or solicitation of any security. The deal, figures, and returns shown are hypothetical composites for illustration; they are not a promise, projection, or guarantee. Business investments carry risk, including loss of your entire investment. Consult your own financial, tax, and legal advisors before investing. HedgeStone does not guarantee any outcome.

HedgeStone Business Advisors | Billionaire Buyers Club | hedgestone.com | (561) 593-3711

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