Car washes in the rust belt area have lost some wash numbers due to economy, weather patterns, rising gas prices etc. The property values the washes sit on have also lost value. At one point an easy way to determine the selling price of a wash was to use a 3 times gross (gross yearly sales) figure. How far off am I in today's day and age when it comes to determining what a wash should be priced at? I understand distressed or foreclosed situations inpact pricing, but a standard 15-20 year old business with operating equipment and a track record of income taxes, electric and water bills- does the current economic condition change the factor used on gross sales?
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Fair Market Value?
- Thread starter my2cents
- Start date
rph9168
Carwashguy
I have always thought that a worth of a business is based on the profit it generates plus the value of its hard assets. No one pays for blue sky anymore. With that in mind I believe that each wash's worth can only be established on an individual basis. I don't really think there is a standard formula to establish worth.
robert roman
Bob Roman
Circumstances to value are always different. So, rule-of-thumb is simply that.
Cash is king whether it’s a car wash, fast food, etc. So, look to cash flow plus land plus other assets for a value. If you are buying, adjust this for risk because everyone’s is different.
Cash is king whether it’s a car wash, fast food, etc. So, look to cash flow plus land plus other assets for a value. If you are buying, adjust this for risk because everyone’s is different.
