New Member Looking to Acquire - SS or Express? Multiples & Valuation?

[In-N-Out]

Hi all,

I am looking to acquire an existing SS or express business and take on the project full time.

One question I have is whether SS is still attractive/worthwhile in more affluent suburbs where I see some express facilities popping up. Another question I have is what multiple (EBIDTA, Revenue, etc.) should I expect to pay? I also assume if the real estate is part of the deal, that would be an additional cost.

Cheers and many thanks!

 

[Just Nebraska]

Owners ask whatever they want for car wash. For self service, would recommend around 5x gross - if it’s anything above that, I’d hope that equipment is relatively new and good real estate. The self services that look presentable do great where I am (Omaha where there is an express car wash on every corner).

 

[JaySingh]

Yes SS is still attractive. There are fewer of them around and people like self-washing their cars.

I only buy Car Washes with the land and we are averaging around a 11.7% cap rate.