Business Overview

6 Bays
4 Manual with Coin & Credit Card
2 Automatic with Coin & Credit Card
Live video camera feed to owner’s cell phone app for monitoring
Very well maintained and updated each year
Heated Floors
Excellent commercial corridor location
Loyal customer base from Iowa and Illinois
Non-franchise, established 15 years ago
2,800 sf structure on less than 1 acre
Small office with restroom
3 PT very qualified and handy staff will help keep this a turn-key passive income property for the new owner
Seller must focus on new franchise restaurant acquisitions

Financial

  • Asking Price: $100,000
  • Cash Flow: $75,000
  • Gross Revenue: $130,000
  • EBITDA: N/A
  • FF&E: $120,000
  • Inventory: $1,000
  • Inventory Included: Yes
  • Established: 2001

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:2,800
  • Lot Size:N/A
  • Total Number of Employees:2
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Built 20 years ago. All equipment has been professionally maintained, and replaced when necessary.

Is Support & Training Included:

Two part-time retired engineers who live nearby and have been caretakers of the equipment/operation wiling to remain on with new owner.

Purpose For Selling:

Owner's sons must focus on recently acquired franchise restaurants.

Pros and Cons:

Seller bought this car wash in late 2020. In 2021 the main commercial corridor road adjacent had extensive disruptive road construction for nearly the entire year. That construction is complete and business is back up to pre 2021 levels.

Opportunities and Growth:

No marketing to the neighborhood has ever been implemented.

Additional Info

The business was founded in 2001, making the business 21 years old.
The transaction will include inventory valued at $1,000, which is included in the requested price.

The company has 2PT employees and is situated in a building with disclosed square footage of 2,800 sq ft.

Why is the Current Owner Selling The Business?

There are all types of reasons why people choose to sell companies. Nonetheless, the genuine factor vs the one they say to you may be 2 totally different things. For instance, they might claim "I have too many various obligations" or "I am retiring". For many sellers, these reasons are valid. But, for some, these might simply be justifications to try to conceal the reality of changing demographics, increased competitors, recent decrease in revenues, or an array of various other factors. This is why it is really important that you not rely completely on a vendor's word, however rather, utilize the vendor's response combined with your general due diligence. This will repaint an extra realistic image of the business's existing circumstance.

Existing Debts and Future Obligations

If the current entity is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your deal. Numerous companies finance loans so as to cover items like inventory, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can indicate that earnings margins are too thin. Numerous organisations fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future commitments 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 suppliers that need to be met or may cause fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the area draw in new customers? Most times, operating businesses have repeat consumers, which develop the core of their day-to-day profits. Specific factors such as new competitors sprouting up around the area, roadway construction, and employee turn over can impact repeat consumers and adversely impact future revenues. One essential thing to take into consideration is the location of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Clearly, the more individuals that see the business often, the greater the opportunity to develop a returning customer base. A last idea is the general location demographics. Is the business placed in a densely populated city, or is it located on the outskirts of town? Just how might the neighborhood mean house income impact future income potential?