What's new

Evaluating First Deal, Need Advice on Questions

PLM38

New member
Joined
Jul 24, 2022
Messages
5
Reaction score
1
Points
3
Hey All, I’m new to the business and am evaluating new car washes for sale. I have two I’m looking at now of which the preliminary numbers look great. Great locations, we’ve tested the service, the net that the owner makes seems great. They are selling at 4x the net.

All that being said, what would you say are the best questions to ask/number to ask for before making an offer? Before due diligence. What’s reasonable to ask for at this stage?
 

OurTown

Well-known member
Joined
Nov 8, 2017
Messages
3,260
Reaction score
1,160
Points
113
Location
Ohio
Are you saying these are newly built or new on the market? What type of washes are these? Do these include land? 4 times net would be crazy cheap around here. Most with land are 8 -15 or more times net. Are you sure they are not 4 times gross revenue?
 

PLM38

New member
Joined
Jul 24, 2022
Messages
5
Reaction score
1
Points
3
Are you saying these are newly built or new on the market? What type of washes are these? Do these include land? 4 times net would be crazy cheap around here. Most with land are 8 -15 or more times net. Are you sure they are not 4 times gross revenue?
No land included, it’s exactly 4x the net. The equipment is not new.
 

OurTown

Well-known member
Joined
Nov 8, 2017
Messages
3,260
Reaction score
1,160
Points
113
Location
Ohio
That makes more sense. I usually don't look at deals without land but understand why some do.
 
Top