Listing ID: 77485
This listing is for a recently remodeled FLEX Car Wash in Tulare. The Flex model allows for automated Express Wash or Full Service Wash. There is a lot of up side to the car wash which was recently remodeled and includes the property.
Located in an OPPORTUNITY ZONE
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- Asking Price: $1,350,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Why is the Current Owner Selling The Business?
There are all types of reasons individuals decide to sell companies. Nevertheless, the true reason and the one they tell you may be 2 entirely different things. For instance, they may claim "I have way too many other commitments" or "I am retiring". For many sellers, these reasons stand. However, for some, these might simply be reasons to attempt to conceal the reality of transforming demographics, increased competition, current reduction in revenues, or a range of various other reasons. This is why it is extremely important that you not count completely on a seller's word, but rather, use the seller's solution along with your overall due diligence. This will repaint an extra practical image of the business's current circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Many operating businesses borrow money in order to cover items such as supplies, payroll, accounts payable, so on and so forth. Remember that sometimes this can suggest that revenue margins are too tight. Numerous companies fall into a revolving door of taking on debt as a way to pay back other loans. In addition to 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 may have existing agreements with suppliers that need to be fulfilled or may cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area draw in new customers? Many times, operating businesses have repeat consumers, which develop the core of their day-to-day earnings. Particular aspects such as new competitors growing up around the area, road building and construction, and also employee turnover can affect repeat consumers and also negatively influence future profits. One important thing to consider is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more people that see the business regularly, the better the possibility to build a returning client base. A last idea is the general area demographics. Is the business situated in a densely populated city, or is it situated on the outside border of town? How might the local average home income effect future income prospects?