Are there any good articles available on valuing an express wash and also presenting the Financials in a format that will make sense to a potential buyer ? Is the business valued as one price and the Real Estate then appraised and added to the Value of the Business? The real estate and business will be sold as a package.
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how to develop an asking price when selling an express wash
- Thread starter Ric4chet
- Start date
robert roman
Bob Roman
“Are there any good articles available on valuing an express wash….”
Yes, they are found by searching the article archives of the trade journals – Auto Laundry News (www.carwashmag.com) and Professional Carwashing and Detailing (www.carwash.com).
I know because I have written some of them.
Articles explain fundamentals involved in buy/sales transactions and current equation to “test” value of wash.
“presenting the Financials in a format that will make sense to a potential buyer ?”
Investors want to see income and expenses that have been reconstructed or adjusted to determine the potentially available cash flow for a new owner.
Reconstruction earnings and expenses is EBITDA, before owner’s discretionary expenses and adjusted for extraordinary and non-recurring income and expenses.
The calculated three-year weighted average reconstructed earnings are then used to determine the preliminary business value (business only).
To arrive at appraised value for 100 percent of the company, it is necessary to adjust preliminary value for assets and liabilities.
Investors also like to see estimate of goodwill because it serves as price negotiating point.
Goodwill value is preliminary value less the liquidation value of furniture, fixtures and equipment.
Hope this helps.
Yes, they are found by searching the article archives of the trade journals – Auto Laundry News (www.carwashmag.com) and Professional Carwashing and Detailing (www.carwash.com).
I know because I have written some of them.
Articles explain fundamentals involved in buy/sales transactions and current equation to “test” value of wash.
“presenting the Financials in a format that will make sense to a potential buyer ?”
Investors want to see income and expenses that have been reconstructed or adjusted to determine the potentially available cash flow for a new owner.
Reconstruction earnings and expenses is EBITDA, before owner’s discretionary expenses and adjusted for extraordinary and non-recurring income and expenses.
The calculated three-year weighted average reconstructed earnings are then used to determine the preliminary business value (business only).
To arrive at appraised value for 100 percent of the company, it is necessary to adjust preliminary value for assets and liabilities.
Investors also like to see estimate of goodwill because it serves as price negotiating point.
Goodwill value is preliminary value less the liquidation value of furniture, fixtures and equipment.
Hope this helps.
