I’m in over my head and considering finding an exit strategy. How would one go about valuing the business and/or property? Not sure when or if I’ll sell (or if I’d even be able to), but it’s becoming more and more obvious that don’t have the time or the talent to make it work. Any suggestion you can give would be appreciated.
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Appraisal for SS
- Thread starter CaptnBuck
- Start date
Roz
Well-known member
Sorry to hear of your challenge. Where are you located? Carwash valuations are far from an exact science. Depends on land value vs business value (cash flow). Land value is based on accessed value and local comps. Business value is a multiple of gross revenue or NOI depending on how high or low the revenue shows. Then one may factor in life expectancy of the equipment. Best idea may to call other washes in the area to see if they are interested in expanding by purchasing your wash.
Good luck.
Good luck.
Where is your wash located and what are you having issues with? This is the place to find out what you are doing wrong and what can be fixed to make the biggest boost on your profit. There are many experienced operators on here that are more than willing to help, and many have brought dead washes back to life many times.
Ive bought run down washes and put 800K in them overnight but the one thing I'll say is the business does not change over night. It takes years to get rid of the bad stench from previous owners. Im not saying you have to put 800K into it but just make sure everything works and run it like that. It's not going to happen overnight or even within the first few years. Everyone has to start somewhere. If you like it then keep it up and learn as you go. If you dont then put a value on it based on the land if the business and equipment is not strong. Get rid of it and move one. Lesson learned and there is nothing wrong with that. Good luck to you sir and wish you nothing but the best!
Waxman
Super Moderator
i'd start with a goal in mind and work backward from there. do you just want to cover your debts and break even? will you need to clear $100k to be happy?
i think it's an important part of any business to have a 'walk away' number. i know i've got mine. if someone came in and offered me $xxx to sell, i'd take a few pictures my kids drew for me down off the wall by my desk and hand them my big key ring.
i think it's an important part of any business to have a 'walk away' number. i know i've got mine. if someone came in and offered me $xxx to sell, i'd take a few pictures my kids drew for me down off the wall by my desk and hand them my big key ring.
