Business valuation help

[wisheewashee]

I searched the threads but could not find this info. We are lookng to sell our car wash and a read a few months back a formula to use on how to value the business. Can anyone direct me there?

Car wash on busy street (45,000 per day) in Florida. Land will be included.
2 Wizard automatics and 3 self serve

Thanks in advance

 

[Patrick H. Crowe]

There was a review of The Car Wash Appraisal Handbook done by Sequoia a few weeks back. Perhaps the search feature will find it.

Patrick H. Crowe

 

[mac]

wisheewashee, like the name. There are a lot of ways to value a wash, but it comes down to what someone is willing to pay you for it. A rule of thumb used to be about 4 times gross, and a couple of years ago when everything was rocking here in FL, some were selling for 6 to 8 times gross. In todays market it's probably anyone's guess, but I would start at 4 or 5 times gross and see who bites. In the meantime, do the things that any seller would before a sale. Get the whole place clean. Not just clean, but real clean. We're talking mostly grunt work, a little paint, and maybe some weed killer and basic landscaping. If the place is over 5 years old and has been operated like most, I would empty the equipment room of everything that isn't bolted down and scrub the blazes out of it. If possible paint the walls gloss white, and add make sure lighting is real good. First impressions really do mean a lot.