Hello! Glad to see there's a forum like this! I'm just getting into this space and found this forum through the research I've done so far. I just wanted to get opinions of this advertisement for an existing car wash/detailing business in my area. It's in a good, overall desirable suburb of Chicago. However, from other listings, it seems some businesses list their price at a multiple of their cash flow, and some at a multiple of their gross revenue. So pretty much asking opinions on this listing and if anyone can clear the air on how these businesses are typically valued. Thanks!
Car Wash Forum
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Opinions on car wash for sale and valuation question
- Thread starter CWNewbie
- Start date
Roz
Well-known member
If the number included the property then it would be an interesting opportunity. For a leased location where it ends in 3 years it is a rich ask. Even if you make an offer based on a renewed lease you are just purchasing a business and no property. Businesses tend to sell for 3x-5x NOI. 3 if no assets and 5 if you have assets like in a laundromat.
everything has a right price, I suspect they are fishing now for a large operator who wants to get into that area of Chicago. If they do not find that operator they may become more flexible on the price.
good luck, be patient.
everything has a right price, I suspect they are fishing now for a large operator who wants to get into that area of Chicago. If they do not find that operator they may become more flexible on the price.
good luck, be patient.
Got it, thanks for the input! I can't wrap my head around the idea of a large operator that wants to get into that area for that price though. Wouldn't they be the ones to haggle and not accept that price more than anyone else, since it would be overvalued at 10x NOI with no property?