car-wash-owning
Unnamed
TalkCarWash Stats: 5669 users, 3547 posts, 14501 replies, 1308 classifieds, 3976 pictures, 2.5 Hours of Video
← Back to Self Serve Car Wash

how to value an existing SS wash

1 reply created over 2 years ago
posted by wash rookie over 2 years ago

How do you determine the value of an existing car wash. There is an older 8 bay unit on a major street (16K autos in a 45 zone)near the corner. The owner is asking 275K (with land) and states that it has a cash flow of 10K per month. I doubt his estimate because I never see more than 1 or 2 cars there at a time. 1 Bay control is busted. It only has 3 vacs and only 1 of those work. I see a lot of repairs that are needed.

Assuming I can find out how much the place is really making, is there a formula to determine the value of the wash? Something like sales price should equal 2 or 3 times the annual cash flow?

Excluding the loan service and repairs, what percentage of the gross or cash flow should be for the expenses (water, sewer, soap, electric, etc)?

Also what would be a ball park cost of converting one of the SS bays to an automatic?

Replies

reply by Robert Roman over 2 years ago

“How do you determine the value of an existing car wash?”

Carefully!

Is there a formula to determine the value of the wash?

One rule of thumb to test business-only value of self-serve wand property is 2.0 times adjusted earnings. To determine 100 percent value, add real estate and liquidation value of building and equipment less any liabilities.

Generally speaking, wand facility has gross net of about 60 percent, 55 percent in cold country.

“Assuming I can find out how much the place is really making….”

If you have to work hard to obtain the books, “I doubt his estimate…” is probably correct.

For example, people don’t normally sell a carwash that has broken stuff unless they can’t afford to fix it.

Cost range of wand conversion is between $100,000 and $250,000.

Believe there’s blue sky? Engage an expert to prepare opinion of value.

You could leave a reply if you were logged in.
car-wash-operating