Business Overview

This eight-bay car wash includes one touchless automatic and seven self-serve bays plus 12 vacuum systems. Many of their longtime customers drive across town to use this well-maintained facility. The loyal customer base recognizes the high-quality wash offered by this well-established business.

Financial

  • Asking Price: $750,000
  • Cash Flow: $97,000
  • Gross Revenue: $205,000
  • EBITDA: $97,000
  • FF&E: $60,000
  • Inventory: $2,000
  • Inventory Included: Yes
  • Established: 2000

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:Yes
  • Building Square Footage:50,000
  • Lot Size:N/A
  • Total Number of Employees:N/A
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The facility was built and designed in 2000 by the current owners. The building is solid concrete and built to last. It offers seven self-serve wash bays and one “touchless” automatic and 12 vacuums. The automatic bay attracts many customers with show cars who are extremely particular and cautious of car washed. The “touchless” automatic can’t and won’t damage their car. The equipment in the automatic bay was replaced in 2020. The property’s lot is nearly 50,000 sq ft.

Is Support & Training Included:

As needed.

Purpose For Selling:

Divorce & focus on other businesses.

Pros and Cons:

The high traffic location is well maintained with a large lot to accommodate waiting lines for their customers during the peak busy times. This allows customers the space to maneuver their vehicles around the facility. This provides ample room to easily get to the vacuums, the exit or a spot to dry off their vehicle. The only competitor within 2-3 miles, is an older facility that has not been well maintained.

Opportunities and Growth:

A 20% price INCREASE in September 2021. The owners have heard ZERO complaints from their customers about the recent price increase.

Additional Info

The company was founded in 2000, making the business 22 years old.
The deal does include inventory valued at $2,000, which is included in the listing price.

The company has 0 employees and is situated in a building with approx. square footage of 50,000 sq ft.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why individuals resolve to sell businesses. However, the genuine reason vs the one they say to you may be 2 entirely different things. As an example, they might say "I have too many other responsibilities" or "I am retiring". For numerous sellers, these reasons stand. However, for some, these may simply be reasons to try to conceal the reality of transforming demographics, increased competitors, recent decrease in revenues, or a range of other reasons. This is why it is extremely crucial that you not rely entirely on a seller's word, but instead, make use of the vendor's solution along with your total due diligence. This will paint an extra sensible image of the business's existing situation.

Existing Debts and Future Obligations

If the current entity is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your offer. Many businesses finance loans with the purpose of covering items like inventory, payroll, accounts payable, etc. Remember that in some cases this can mean that profit margins are too small. Many businesses fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future commitments to think about. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that must be satisfied or may cause penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the location attract new clients? Often times, companies have repeat customers, which form the core of their everyday profits. Specific aspects such as brand-new competition sprouting up around the location, roadway building and construction, and also personnel turn over can impact repeat clients as well as negatively affect future earnings. One crucial thing to consider is the placement of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Obviously, the more individuals that see the business regularly, the greater the opportunity to construct a returning customer base. A final idea is the general area demographics. Is the business located in a largely inhabited city, or is it located on the outside border of town? Exactly how might the neighborhood median household income influence future revenue potential?