CarWashNovice
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- Sep 27, 2021
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Hello, everyone!
I am new to the forum and also completely new to Car Wash ownership.
I currently own a smaller commercial gym and an online business and looking to diversify further with something I perceive to be a little more "passive" than my current business ventures.
I came across a deal in a local area and was looking to get feedback on this. It seems like it has the potential (based on my digging into info on this forum as it pertains to the location, VPD, capture rate, demographics, etc) with a little more time spent on marketing, advertisement, years in business, etc.
This is a newer Car Wash - opened March/April 2020 when the pandemic hit. I would assume this impacted sales.
The owner purchased this facility in 2018 and invested $275k into renovations including new bays, new automatic bay, roof, parking lot, etc.
I attached a list of all of the Capital Improvements the Owner had done to the property.
6 Self Serve Bays
1 Automatic
4 Vacuums
However, sales seem low but I understand that this is still a new facility, and based on conversation from the Broker, the current owner hasn't tried to do anything to improve revenue or sales (marketing, ads, etc) and is looking to leave the business to focus on other businesses.
I will attach pictures of the Demographic Survey and the Income/Expense sheet sent from the Broker.
Looks like sales will improve in 2021 compared to 2020 and are estimated to be around $60,000.
Broker mentioned through running comparable sales data of other washes in this city revenue could be around $85,000-$100,000 yearly (not sure how true this is but based on VPD and Capture Rate... perhaps).
VPD is 24,000.
Sale includes business, land, and building.
Seller ask is $365k.
Is this a deal that you would consider further?
Truthfully, I would much rather come into an established business that is producing a return on the investment already but it seems like it could be a good opportunity with a little sweat equity and a purchase price that limits risk further.
I bought my gym in a similar situation (it was losing money actually) and increased sales and re-negotiated the lease and 2 years later the NOI is $8,000/month... but I know how much time and energy (and stress lol) it takes to purchase a business that is losing money or even break even (which it seems like this business is or close) and I don't want to discount that.
Any thoughts?
Thanks for your time reading/replying to this as well.
I am new to the forum and also completely new to Car Wash ownership.
I currently own a smaller commercial gym and an online business and looking to diversify further with something I perceive to be a little more "passive" than my current business ventures.
I came across a deal in a local area and was looking to get feedback on this. It seems like it has the potential (based on my digging into info on this forum as it pertains to the location, VPD, capture rate, demographics, etc) with a little more time spent on marketing, advertisement, years in business, etc.
This is a newer Car Wash - opened March/April 2020 when the pandemic hit. I would assume this impacted sales.
The owner purchased this facility in 2018 and invested $275k into renovations including new bays, new automatic bay, roof, parking lot, etc.
I attached a list of all of the Capital Improvements the Owner had done to the property.
6 Self Serve Bays
1 Automatic
4 Vacuums
However, sales seem low but I understand that this is still a new facility, and based on conversation from the Broker, the current owner hasn't tried to do anything to improve revenue or sales (marketing, ads, etc) and is looking to leave the business to focus on other businesses.
I will attach pictures of the Demographic Survey and the Income/Expense sheet sent from the Broker.
Looks like sales will improve in 2021 compared to 2020 and are estimated to be around $60,000.
Broker mentioned through running comparable sales data of other washes in this city revenue could be around $85,000-$100,000 yearly (not sure how true this is but based on VPD and Capture Rate... perhaps).
VPD is 24,000.
Sale includes business, land, and building.
Seller ask is $365k.
Is this a deal that you would consider further?
Truthfully, I would much rather come into an established business that is producing a return on the investment already but it seems like it could be a good opportunity with a little sweat equity and a purchase price that limits risk further.
I bought my gym in a similar situation (it was losing money actually) and increased sales and re-negotiated the lease and 2 years later the NOI is $8,000/month... but I know how much time and energy (and stress lol) it takes to purchase a business that is losing money or even break even (which it seems like this business is or close) and I don't want to discount that.
Any thoughts?
Thanks for your time reading/replying to this as well.
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