Business Overview

Newly built car wash with retail space and detailing facilities.

Financial

  • Asking Price: $975,000
  • Cash Flow: $102,077
  • Gross Revenue: $157,592
  • EBITDA: N/A
  • FF&E: $336,000
  • Inventory: $7,000
  • Inventory Included: Yes
  • Established: 2018

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:Yes
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:N/A
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

2 weeks

Purpose For Selling:

retiring

Additional Info

The company was founded in 2018, making the business 4 years old.
The deal does include inventory valued at $7,000, which is included in the asking price.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people resolve to sell operating businesses. Nevertheless, the real factor vs the one they tell you might be 2 entirely different things. As an example, they might say "I have a lot of other commitments" or "I am retiring". For many sellers, these reasons stand. But also, for some, these might simply be justifications to attempt to hide the reality of transforming demographics, increased competition, recent reduction in earnings, or a variety of other factors. This is why it is very essential that you not count absolutely on a vendor's word, yet instead, use the seller's solution combined with your overall due diligence. This will paint an extra practical picture of the business's current scenario.

Existing Debts and Future Obligations

If the current entity is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your offer. Many operating businesses finance loans with the purpose of covering things such as inventory, payroll, accounts payable, etc. Remember that in some cases this can indicate that profit margins are too thin. Numerous businesses fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may likewise be future commitments to consider. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with suppliers that have to be satisfied or may lead to charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the location attract brand-new customers? Many times, operating businesses have repeat customers, which create the core of their daily revenues. Specific factors such as new competitors growing up around the area, road building and construction, and also staff turnover can influence repeat consumers and also negatively affect future earnings. One crucial thing to take into consideration is the placement of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Obviously, the more people that see the business often, the better the chance to develop a returning consumer base. A last idea is the general location demographics. Is the business placed in a densely populated city, or is it situated on the outskirts of town? Exactly how might the neighborhood typical home income impact future earnings potential?