After a good 30 year run I think it's time to sell my car wash. I searched the forum but could not find threads on the best way to market and sell a SS/IBA wash. I'm not sure whether to contact someone who specializes in car wash only sales (seem to only find tunnel specialists), a local commercial real estate agent, or other alternatives. Any advice appreciated, even if just a link to a former thread as I'm sure this has to have been discussed previously.
Advice for selling 5 SS/1 IBA wash in FL?
- Thread starter LeeD
- Start date
Rfreeman
Well-known member
LeeD
I would start here to see if any of our forum members are in your area and looking to expand to another location....I know I'm always looking. I believe recently Pat sold his washes to another forum member and he mentioned that they met through this site. Secondly, I would look around your local area at other car wash owners to see if they would be interested in another location. Lastly, I would look at a real estate agent/professional but make sure its one that has car wash knowledge otherwise they don't really bring value to the transaction IMHO.
Good luck and congrats on the 30 year run!
I would start here to see if any of our forum members are in your area and looking to expand to another location....I know I'm always looking. I believe recently Pat sold his washes to another forum member and he mentioned that they met through this site. Secondly, I would look around your local area at other car wash owners to see if they would be interested in another location. Lastly, I would look at a real estate agent/professional but make sure its one that has car wash knowledge otherwise they don't really bring value to the transaction IMHO.
Good luck and congrats on the 30 year run!
I’d recommend putting together as much information about the wash as possible, lot size, equipment types, traffic counts, nice photos, revenues from each wash type, etc. Then share with a couple of trusted folks to organize it into a package that you’d feel comfortable looking at if you were a buyer. Next step might be a non-disclosure form for a qualified buyer to sign in order to obtain full financial package. You’ll likely derive the best price from another operator unless the land value is rapidly increasing in your area. Good luck and congrats!
Some general thoughts. Any broker will want around 10% for the sale. Do not use a residential broker, and if possible find one with the letters CCIM after their name. Next make sure the place looks real, real nice. Get the equipment room in order. Throw away all the junk. Have everything neat, clean, and organized.In FL there is an organization called BizNet (I think) that allows you to list the place. If you go this route be sure to get a good lawyer who knows how to write a sales contract. If a buyer is serious he or she will want to see your last 3 years tax returns. If a buyer has no experience operating a wash most banks won't fund it. In that case consider you financing it with a hefty down stroke, say around 40 to 50%. Amortize the balance for 20 years to get a monthly payment and have a balloon payment after 5 years. Write it so that if the guy goes 90 days without a payment you get it back and keep what you've collected. Know one guy here in FL that sold his old place 3 times. And, very important, when sold have something to do to get you out of the house. If you sit around and watch Dr. Phil you'll be dead in four years.
I am both a car wash owner and a long term licensed real estate broker. As a real estate broker, I have experience with residential, commercial, and "business opportunity." What the OP wants to sell is both real estate and "business opportunity." Some real estate agents and brokers have experience in this area, but many do not.
First: I would decide if I am going to try to sell it myself, or work with a broker. A car wash is one of the most difficult things to sell yourself, as it includes land, fixtures and equipment, and business opportunity (i.e. on-going business with revenue and expenses.) There are almost no guides on valuation or how to proceed, although Pat Crowe years ago wrote the "Car Wash Appraisal Handbook" which at least was a start.
The "pros" for selling it yourself is you will save a commission on sale, usually 10% but maybe less. Commissions ARE negotiable!
The "cons" for selling it yourself is it is a great deal of work, you will have limited market exposure to buyers as you cannot insert it into an MLS system, there is a risk that you will screw up your numbers and presentation, and you might get sued for acts you do, including acts of "omission." Which means you get sued for not doing something you should have done-- even if you didn't know you should have done it. Finally, calculating your "net profit" to present to a future buyer is more complex than most realize-- it is a calculation to computer "SDE" (seller discretionary earnings) and it is more complex than what you put on your tax return. (You need to back out things like property tax, and more, which serve to increase the computation of SDE to a number higher than your net profit.)
What I would do is this:
1- Do some basic research on real estate firms in your area. See which ones handle sales of business (not just houses.)
2- Contact the BROKER of these firms directly (not an agent working for the broker.) Tell the broker what you want to do, and ask what their process is if you want to work with them. It is OK if the Broker wants to assign an agent to work with you, and that is typical. But start your first contact with the Broker.
3- Get at least 3 real estate firms to make a proposal to you about how to market your business. They should describe their marketing plan for the business, which includes signage, print media and flyers, and so on. The better the marketing plan, the more interested I would be.
4- You can also consider a national firm, like carwashbrokers.com. I have never dealt with one of these, so I cannot comment either pro or con.
After you do the above steps, decide if you want to: a) market and sell it yourself, b) choose on of the real estate firms to do it, or, c) expand your search and interview more real estate firms.
Important point: Most of your "thunder" of interest, excitement, and attracting a new buyer happens within the first 30 days of exposure to the market. What I would not do is merely post a "Business For Sale" sign at the business to "see what happens." If you do that, you greatly dilute the "thunder" you or others have if you choose another route later.
Hope that helps.
First: I would decide if I am going to try to sell it myself, or work with a broker. A car wash is one of the most difficult things to sell yourself, as it includes land, fixtures and equipment, and business opportunity (i.e. on-going business with revenue and expenses.) There are almost no guides on valuation or how to proceed, although Pat Crowe years ago wrote the "Car Wash Appraisal Handbook" which at least was a start.
The "pros" for selling it yourself is you will save a commission on sale, usually 10% but maybe less. Commissions ARE negotiable!
The "cons" for selling it yourself is it is a great deal of work, you will have limited market exposure to buyers as you cannot insert it into an MLS system, there is a risk that you will screw up your numbers and presentation, and you might get sued for acts you do, including acts of "omission." Which means you get sued for not doing something you should have done-- even if you didn't know you should have done it. Finally, calculating your "net profit" to present to a future buyer is more complex than most realize-- it is a calculation to computer "SDE" (seller discretionary earnings) and it is more complex than what you put on your tax return. (You need to back out things like property tax, and more, which serve to increase the computation of SDE to a number higher than your net profit.)
What I would do is this:
1- Do some basic research on real estate firms in your area. See which ones handle sales of business (not just houses.)
2- Contact the BROKER of these firms directly (not an agent working for the broker.) Tell the broker what you want to do, and ask what their process is if you want to work with them. It is OK if the Broker wants to assign an agent to work with you, and that is typical. But start your first contact with the Broker.
3- Get at least 3 real estate firms to make a proposal to you about how to market your business. They should describe their marketing plan for the business, which includes signage, print media and flyers, and so on. The better the marketing plan, the more interested I would be.
4- You can also consider a national firm, like carwashbrokers.com. I have never dealt with one of these, so I cannot comment either pro or con.
After you do the above steps, decide if you want to: a) market and sell it yourself, b) choose on of the real estate firms to do it, or, c) expand your search and interview more real estate firms.
Important point: Most of your "thunder" of interest, excitement, and attracting a new buyer happens within the first 30 days of exposure to the market. What I would not do is merely post a "Business For Sale" sign at the business to "see what happens." If you do that, you greatly dilute the "thunder" you or others have if you choose another route later.
Hope that helps.
OASIS WASH
Member
Lee,
Where are you located in FL? I'm in Jacksonville
Where are you located in FL? I'm in Jacksonville
I'm in Cocoa.