The professional car wash industry clocks in at an astounding $23 billion. The options for finding a car wash for sale range in size and scope, from self-service locations, automatic roll over bays, conveyor washes and more. An entrepreneur who wants to buy into this business has a wealth of options and many important decisions to make. In order to buy a car wash for sale that will be successful in your hands, focus on these important issues.
What Type Of Car Wash For Sale Are You Best At Running Profitably?
The many different types of car washes allow many different types of owners to succeed in the industry. For an owner who prefers a 'hands off' approach, an absentee business, or wants to expand, self service and automatic roll over bays make for an ideal car wash for sale. These facilities typically require less direct oversight from an owner plus fewer staff to manage. The major business needs fall to maintenance since customers will be washing their own cars or using an automated roll over bay.
On the other hand, owners that want to be more directly involved are better served with finding a conveyor car wash for sale. This type of facility requires regular staffing, provides customer service, offers extra services, and benefits from an attentive and motivated owner.
Valuing A Car Wash For Sale - Getting The Most Out Of Your Investment
Valuing a car wash for sale can have some hurdles; like many cash businesses, sometimes it is difficult to prove every sale and report on all earnings. Regardless, the best way to determine a fair purchase price for a car wash for sale is to multiple the average annual earnings by 2 or 2.5 for a particularly successful location. This quick equation will give you a fair market value for a car wash for sale and is a very solid guideline for negotiating the final price.
Other Methods For Valuing A Car Wash For Sale
Sometimes cash earnings can be difficult to document in their entirety, so supplemental valuation methods can help a potential buyer feel good about their investment. Revenues can be used as a valuation metric; typically 30% to 35% of gross revenues can be used as a good estimate of actual earnings. Buyers can also look at water usage bills during due diligence. For automatic bay roll over and conveyor washes, the water used should be the same per wash. So look at the total water used, divided by the amount of water used per wash, and then multiply by average price to estimate revenues. Be careful though if a full service location offers other services such as waxing or detailing that do not use water.
The most successful entrepreneur looking to buy a car wash for sale has to focus on buying a business that plays into their own management strengths at a fair price.
Looking to buy a car wash business? See all car wash businesses for sale in California - or sell a car wash business and reach thousands of car wash buyers. Also keep up to speed on the California car wash market (with industry business brokers & experts) with upcoming BizBen Online Talk Shows & Webinars.
About The Author: Peter Siegel, MBA is the Founder of www.BizBen.com (established 1994 - 7000+ California businesses for sale, 200 new listings daily) and the Director of the BizBen Network (16,000 business buyers, 4,000 small business owners, 1,800 California business brokers & agents). Peter Siegel can be reached direct at 866-270-6278 to discuss selling a car wash, financing a car wash purchase, or buying a California car wash.
|Helpful Resources To Assist In Selling And Buying California Businesses|
|Helen Yoo: Escrow & Bulk Sale Services - Southern California
New Century Escrow, Inc. is a fully licensed & bonded independent escrow company. Over 20 years combined experience in handling bulk escrow transactions. Multi-lingual staff that speaks your language, including Korean, Chinese, Vietnamese. Call Helen Yoo direct at 626-890-1151.
|Michael Davidson, Business Broker - Southern California
Los Angeles Business Broker providing M&A quality services for Small Business Owners. We leverage our technology and expertise to Simplify & Expedite the Business Sales Process. Matching the right buyer with the right business is how we define success.
|Abdul Jobah, Business Broker, Central Valley, Kern County
As A Real Estate Agent, I offer my clients assistance with the sale or purchase of commercial properties and/or businesses. Please contact me if you are looking to sell or buy a Central Valley business. If at any time you have any questions please do not hesitate to call me at 661-703-3916.
|Bob Hughes: Business Broker, Palm Springs Area
Bob Hughes is a business broker & is President of Hughes Properties. Hughes has a wide variety of entrepreneurial experience with the personal ownership & sale of numerous businesses, and has sold over 200 small & mid-sized businesses in the Riverside County marketplace. Call Bob at 760-323-8311.
|Harry Sidhu, CBB, Broker - SF Bay Area, Central Valley, SAC Region
Assisting both sellers and buyers of businesses - dealing mainly with Liquor Stores, Grocery Markets, Gas Stations, Smoke Shops, Restaurant Related, Retail Related, Service Related. Serving SF Bay Area, North Bay, Sacramento area. Call Harry Sidhu, CBB for assistance at 510-366-6130.
|Willard Michlin, CPA, Certified Fraud Examiner, Due Diligence Services
Willard Michlin, CPA #106752, offers buyers step by step training & assistance in doing Due Diligence Services when they are thinking of making an offer, or are in process of investigating a business purchase. He helps to determine the actual net profit even when there is cash. Call 800-864-0420.
|Peter Siegel, MBA - SBA Loans, Non SBA Financing Assistance
For over 25 years I have provided niche business purchase financial advisory and loan placement services with SBA and Non-SBA Loans, Retirement Plan Conversions, Private Investors, etc. Financing amounts available: $20K to $7MM. Call today to get pre-qualified or receive financing: 866-270-6278.
|Chris Seaman, Business Broker - San Diego County Area
Founded in 1994, First Choice Business Brokers has accelerated to become one of the most successful Business Sales Organizations in the world. Our team of agents have gone through extensive training to become experts in the field of business brokerage. Call Chris at 858-578-4111 for more info.
|Related Articles, Events, Blog Posts, Discussions, Videos, Interviews|
|Buying A Car Wash: How Much Money Can I Make From a Self Serve Car Wash?
How much money should you expect to make when buying an automatic car wash? While every business is unique, on average, buying a self-serve car wash can be a great investment and income opportunity. Peter Siegel, MBA (BizBen ProBuy Program Director and Business Purchase Financing Expert) explains.
|Buying A Car Wash - Three Successful Types Of Car Washes To Consider Buying
One of the most popular buyer requests are car washes. Considered easy to run, the number of cars on the road continues to increase, while it doesn't seem that car wash installations are being added to keep pace. Peter Siegel, MBA (BizBen ProBuy Program & Financing Expert) at 866-270-6278 explains.
|Buyer Beware: Does A Company's Culture Effect The Sale Of A Small Business?
When purchasing a small to mid-szied CA business, there are a many items to evaluate. One area that is often overlooked is the business's office culture. Peter Siegel, MBA with BizBen discusses with business buyers the importance of understanding how the business "feels" on a day-to-day basis.
|Thinking Of Selling My Business: What Factors Create Value And Drive Price?
There are a lot of misconceptions about what enhances the value of a business. The following factors in this Discussion Post on BizBen are aspects of a business that really drives its value and pricing. Business owners thinking of selling should check these out these factors before selling.
|I am Buying A Business: Should I Buy The Property As Well? A Good Decision?
There are advantages and disadvantages to owning commercial property. Here are a few questions to ask when it comes to deciding whether or not to buy the property along with the business. Peter Siegel, MBA with the BizBen ProSell Program reviews this issue with potential sellers and intermediaries.
|4 Reasons Why Business Brokers Do Not Cooperate With Other Brokers & Agents
Despite challenges in the business for sale marketplace, some of the business brokers who make a living by facilitating a deal between buyer and seller are known to stand in the way of a completed transaction because of some outdated ideas. Too bad they put greed ahead of the needs of their clients.
|Absentee Run Small Businesses - Is That Really A Possibility For Buyers?
Is buying a absentee run small business really a possibility? Peter Siegel (BizBen ProBuy Director) gets asked this question a lot in his consulting sessions with business buyers. Read more about what other Advisors and Intermediaries feel about this topic on this popular BizBen Discussion!
|What Factors Are Considered In Valuing A Small Business? Advisors Weigh In
Valuing a small business is not guess work. It's not what some other businesses of the same type may have or may not have been sold for, it's not even what a business owner "feels" they want or deserve. It is a formula based on many factors. Peter Siegel, MBA from BizBen & others discuss this topic.
|See All News, Tips And Events|