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How to price and sell a wash.
- Thread starter jaykay
- Start date
Waxman
Super Moderator
hire a commercial apprsiser.
use the 3-5x gross income multiplier as a start point.
talk to competitors and see if any may be interested.
get financials in order.
do you know your "walk away" number? i know i've had a figure in mind for myself for quite some time and i'm not even close to ready to sell ( 2 kids in college and a third going in 3 years).
use the 3-5x gross income multiplier as a start point.
talk to competitors and see if any may be interested.
get financials in order.
do you know your "walk away" number? i know i've had a figure in mind for myself for quite some time and i'm not even close to ready to sell ( 2 kids in college and a third going in 3 years).
Rfreeman
Well-known member
Personally, I wouldn't get an appraiser unless they really know the ins and outs of car washing and how they trade on the open market. Appraisers are limited to their knowledge of appraisal through 3 main theories of valuation: cost, sales, income approach...they will rely most on the income approach to valuation.
All other points Waxman mentioned are solid points and would recommend following them.
How to price a wash: economics and market data from professionals. Personally, I would look to a good commercial realtor that has knowledge and experience in the car wash space. They already have a database of car wash investors or owners to bring this offer to (as mentioned earlier start with your competitors maybe one of them is looking to add another site, I know I will always take a look at a new car wash offer).
How to sell a wash: the deal has to make sense for both parties starting with solid books to make the deal "bankable" unless they show you a bank statement with a balance that covers the purchase price.
Good luck
All other points Waxman mentioned are solid points and would recommend following them.
How to price a wash: economics and market data from professionals. Personally, I would look to a good commercial realtor that has knowledge and experience in the car wash space. They already have a database of car wash investors or owners to bring this offer to (as mentioned earlier start with your competitors maybe one of them is looking to add another site, I know I will always take a look at a new car wash offer).
How to sell a wash: the deal has to make sense for both parties starting with solid books to make the deal "bankable" unless they show you a bank statement with a balance that covers the purchase price.
Good luck
Islandwash
Member
I just sold my Flex serve conveyor after 35 plus years. On the market over 2 years. All of the above is good stuff. Check with carwash specific realtors. What and where and who your competition is critical and will affect your selling price. Good luck
I sold two washes last year.
I will say this. Appraisers are idiots, and since they are hired by the banks, they are always very conservative with their valuations, to protect the banks of course.
I almost had a sale blow up last year because the appraisal came in stupid low, which lowered the amount the bank would lend to the buyer.
I say stupid low because the appraiser used only SS car washes as comps for my tunnel wash. He mentioned that he was having trouble finding suitable comps, so I used industry contacts and sent him 6 tunnel washes that had closed the prior year. He refused to use a single one.
Good luck.
I will say this. Appraisers are idiots, and since they are hired by the banks, they are always very conservative with their valuations, to protect the banks of course.
I almost had a sale blow up last year because the appraisal came in stupid low, which lowered the amount the bank would lend to the buyer.
I say stupid low because the appraiser used only SS car washes as comps for my tunnel wash. He mentioned that he was having trouble finding suitable comps, so I used industry contacts and sent him 6 tunnel washes that had closed the prior year. He refused to use a single one.
Good luck.
Earl Weiss
Well-known member
I would also contact any local operators who may find your location a good geographic fit. If they are interested in expansion it is worth more to them than anyone lese.
Waxman
Super Moderator
I agree that commercial appraisers can do a poor job valuing a car wash business, but they will be a part of the process if a bank loan is involved.
When I built my wash in 2005, the bank's appraiser made several mistakes. I dug in and found the errors. The banker gave me a good scolding. However, I held firm and the appraisal was adjusted and I got my funding.
When I built my wash in 2005, the bank's appraiser made several mistakes. I dug in and found the errors. The banker gave me a good scolding. However, I held firm and the appraisal was adjusted and I got my funding.
