wash for sale - price?

[needle]

This Midwest location is a full service model. Around 120 foot tun using a mixture of touchless and friction. Equip is in good shape. Annual sales are $580,000 / year. Net to owner (call it EBITDA) around $120,000. 45-50,000 cars total... 30,000 full service and the 16,000-19,000 exterior. Leased location around 25 years left on lease. What's it worth? Thanks- Needle

 

[washtubman]

Not enough info to answer your question! Have the owner do a formal appraisal and that will put you in the ballpark.

 

[robert roman]

Sounds like an expensive job.

A good starting point would be to consider hiring a neutral 3rd party like a real estate agent, carwash business broker or carwash consultant that is qualified to provide an opinion of value.

 

[Earl Weiss]

This Midwest location is a full service model. Around 120 foot tun using a mixture of touchless and friction. Equip is in good shape. Annual sales are $580,000 / year. Net to owner (call it EBITDA) around $120,000. 45-50,000 cars total... 30,000 full service and the 16,000-19,000 exterior. Leased location around 25 years left on lease. What's it worth? Thanks- Needle

You can factor anything based on ROI, but that ia an oversimplification.
EBITDA - Earnings before interest taxes, deprciation and amortization is a bad measure. First and foremost you need an interest factor. Even if you buy for cash, there is a time factor (Albeit small to money.) Lets say you pay 5x earnings of $600,000. If the business loan is 5% (A great rate), that's $30,000.00 off the top of the $120,000.00. If you have to absorb a big capital expense like $25,000 for a conveyor or similar, it will eat into things.

You also need to look for any missing items like mgt salaries.