Listing ID: 73450
This offer includes 6 car washes in Ohio and Indiana. These car washes have both auto bays, as well as, self-serve. Each location is staffed with 2 part-time attendants so that the owner is responsible for making sure they are staffed, purchasing, and financials.
- Asking Price: $4,100,000
- Cash Flow: $417,142
- Gross Revenue: $776,121
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: Yes
- Established: 1998
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:12
- Furniture, Fixtures and Equipment:N/A
Owner is willing to stay on for a period of time that is agreed to by both parties.
The owner would like to retire.
The infrastructure is already in place with 6 established car washes that are currently cash flowing. A new owner can continue to upgrade current locations and consider raising current prices.
The company was founded in 1998, making the business 24 years old.
The business has 12 employees and is situated in a building with disclosed square footage of N/A sq ft.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people decide to sell companies. Nevertheless, the real reason and the one they say to you may be 2 completely different things. For instance, they may state "I have way too many other responsibilities" or "I am retiring". For many sellers, these reasons are valid. However, for some, these might simply be excuses to try to hide the reality of altering demographics, increased competitors, recent decrease in earnings, or an array of various other reasons. This is why it is extremely important that you not rely entirely on a vendor's word, but rather, utilize the vendor's solution combined with your general due diligence. This will paint a much more practical image of the business's existing scenario.
Existing Debts and Future Obligations
If the current company is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous operating businesses finance loans with the purpose of covering items like inventory, payroll, accounts payable, etc. Remember that in some cases this can indicate that earnings margins are too small. Lots of companies fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future obligations to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with vendors that must be satisfied or might lead to penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area draw in new consumers? Most times, operating businesses have repeat clients, which create the core of their daily earnings. Specific aspects such as brand-new competition growing up around the location, road building and construction, and also personnel turnover can impact repeat clients as well as adversely influence future profits. One crucial thing to take into consideration is the placement of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Clearly, the more individuals that see the business on a regular basis, the better the possibility to develop a returning customer base. A final thought is the basic area demographics. Is the business situated in a densely inhabited city, or is it situated on the outskirts of town? Just how might the regional mean family earnings influence future earnings potential?