What's new
By:
Car Wash Forum

This is a sample guest message. Register a free account today to become a member! Once signed in, you'll be able to participate on this site by adding your own topics and posts, as well as connect with other members through your own private inbox!

Full Serve Valuation - looking to buy

M

mittymitt

New member
Hey all,

new to the game but have had a passion for car washes since i was young kid.
I have a potential wash to buy... nice location, mid block, lots of retail and shoulder businesses and residential nearby and it also does a small amount of lube/detail
traffic count is about 30-40K a day on this road...great visibility and wanted to get some advice - i've seen them selling for various numbers but normally i'm seeing a 3.5x-5x EBITDA or 1.9x revenue multiples
most commonly i'm seeing a blended valuation and that is my goal on this... it's just really hard to tell what the real numbers are as the owner is claiming about 35% cash business

anyways, here are the numbers ... let me know what you guys think - TIA!
he's owned it for 9 years but right now without a LOI he's only showing me last two years P&Ls
Asking $1.8M

YearRevenueTotal ExpensesNet Profit (EBITDA)
2023$1,230,000$880,000$350,000
2024$1,259,100$1,035,308$223,244
Change (%)+2.37%+17.6%-36.2%

1741914898765.png
1741914910532.png
 
First things first. Since RE is not included, you are basically buying a license to operate (lease). What are the lease terms? How many years remaining? Options?
 
Axxlrod said:
First things first. Since RE is not included, you are basically buying a license to operate (lease). What are the lease terms? How many years remaining? Options?
Click to expand...
20 yrs remaining , not sure if the escalation yet starting due diligence . Would want to renegotiate it
 
Waxman said:
$1.8M and the land is not included???

Hard pass.
Click to expand...
Depends on the numbers. I sold a leased car wash for 8 figures last year.
mittymitt said:
20 yrs remaining , not sure if the escalation yet starting due diligence . Would want to renegotiate it
Click to expand...
20 years is about the min I would consider. If you need financing, a bank will only lend for a maximum of the lease term. Make sure you run the numbers so you know what kind of payment you would be signing on for.
 
Last edited:
Car_Wash_Guy said:
Have you checked with city planning to see if ant expresses are coming close by?
Click to expand...
There are about 5 express washes within a 3 mile radius …. But on a different route and divided highway . None that I have discovered planned for this roadway but two more looking for approval about 2.5 miles away on two different divided highways …. Essentially would be a triangle with this
 
Last edited:
Axxlrod said:
Depends on the numbers. I sold a leased car wash for 8 figures last year.

20 years is about the min I would consider. If you need financing, a bank will only lend for a maximum of the lease term. Make sure you run the numbers so you know what kind of payment you would be signing on for.
Click to expand...
You sold a car wash without land for over 10 million dollars? That has to be a record.
 
That one was a very busy wash with a long lease. Land is expensive here in CA. And existing car washes are extremely valuable because new ones are so exponentially hard to get approved. For example, I've been trying to get a new express wash approved in a nearby beach city for years. Been working on this location since 2018, and still don't knew when we will get in front of the planning commission for a vote.
 
but how can that possibly pencil out? A $10 million loan even at 6 1/4% for 30 years and a 20% down payment is $50,000 a month loan payment.
 
You must log in or register to reply here.
Back
Top