cullencarwash
New member
New member here from the Houston area.
I’ve been looking seriously at getting into the self-serve car wash business and I’m currently working through a potential first acquisition. It’s an older self-serve property that has been in the same family since the mid-1980s, but the wash itself has not really been operating for somewhere around 5–8 years.
There’s obviously a lot of history tied up in the property, and the current owner seems pretty emotionally attached to it. He has a price in mind and has made it clear that if he can’t get what he wants, he would rather reopen the wash himself than sell it for less. So I’m trying to be respectful of that while also keeping the business side of the deal separate from the sentimental value.
The biggest thing I’m trying to sort out is where the line falls between buying an operating business and buying real estate with an old car wash sitting on it. After being inactive that long, I’m assuming very little until it is actually inspected and tested.
The financial history is also pretty vague. There are some numbers and claims about what it used to do, but not much in the way of detailed records that I’d normally expect when evaluating a business. From what I’ve been reading, I’m starting to get the impression that this may be fairly common with older self-serve washes, especially ones that were heavily coin-operated and family-run, but I’m still learning how much weight experienced buyers put on those historical numbers versus what can actually be verified.
I’m working through the condition of the equipment, plumbing, electrical, drainage, bays, payment systems, deferred maintenance and the existing infrastructure in general. Pumps, hoses, meters and other above-ground equipment can obviously be repaired or replaced. The things that concern me more are the expensive surprises you can’t immediately see—underground plumbing, drainage, electrical service, structural issues and anything else that could turn a rehabilitation project into a money pit.
There is also the question of what value, if any, should be assigned to the old business itself after being closed for that long versus simply valuing the land, improvements and whatever usable equipment remains.
At this point I’m still in the due-diligence and negotiation stage. I haven’t committed to anything.
Rather than come in with a dozen questions, I figured I’d start a thread and update it as things progress. I’d especially be interested in hearing from anyone who has bought and brought back an older self-serve that had been closed for several years.
What did you find that you weren’t expecting, and what would you look at differently if you were doing it again?
I’ve been looking seriously at getting into the self-serve car wash business and I’m currently working through a potential first acquisition. It’s an older self-serve property that has been in the same family since the mid-1980s, but the wash itself has not really been operating for somewhere around 5–8 years.
There’s obviously a lot of history tied up in the property, and the current owner seems pretty emotionally attached to it. He has a price in mind and has made it clear that if he can’t get what he wants, he would rather reopen the wash himself than sell it for less. So I’m trying to be respectful of that while also keeping the business side of the deal separate from the sentimental value.
The biggest thing I’m trying to sort out is where the line falls between buying an operating business and buying real estate with an old car wash sitting on it. After being inactive that long, I’m assuming very little until it is actually inspected and tested.
The financial history is also pretty vague. There are some numbers and claims about what it used to do, but not much in the way of detailed records that I’d normally expect when evaluating a business. From what I’ve been reading, I’m starting to get the impression that this may be fairly common with older self-serve washes, especially ones that were heavily coin-operated and family-run, but I’m still learning how much weight experienced buyers put on those historical numbers versus what can actually be verified.
I’m working through the condition of the equipment, plumbing, electrical, drainage, bays, payment systems, deferred maintenance and the existing infrastructure in general. Pumps, hoses, meters and other above-ground equipment can obviously be repaired or replaced. The things that concern me more are the expensive surprises you can’t immediately see—underground plumbing, drainage, electrical service, structural issues and anything else that could turn a rehabilitation project into a money pit.
There is also the question of what value, if any, should be assigned to the old business itself after being closed for that long versus simply valuing the land, improvements and whatever usable equipment remains.
At this point I’m still in the due-diligence and negotiation stage. I haven’t committed to anything.
Rather than come in with a dozen questions, I figured I’d start a thread and update it as things progress. I’d especially be interested in hearing from anyone who has bought and brought back an older self-serve that had been closed for several years.
What did you find that you weren’t expecting, and what would you look at differently if you were doing it again?
