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What Are The “Multiples” for Selling Newer Coin Op Car Washes

Today, as I write this article, as a Certified M&E Appraiser (Machinery and Equipment) and also as a Certified Business Valuation and Appraiser, as many as 95% of self service car washes ( Coin Operated) will have a combination of self service and automatic bays.

Further, the Valuation or Pricing is not done, at least professionally – and by that I mean by someone like me, and as required by the SBA or Bank – based on Multiples.   Multiple of Earnings is, of course critical when making a buying decision and it’s the first thing the Lender also needs to know – can the cash flow support the debt load of a new loan AND still pay the owner a reasonable salary to operate it?

But the Valuation of a self-service combined with automatic car wash is sold with real estate, equipment and assets.  The appraised value of these items is between 90 and 98% of the Asking Price or the Offering Price, at least as far as a bank or the SBA is going to be friendly towards.   Also, the cost of building these is so high, it is generally unwise to build on a leased property.  So most will be real estate heavy.

Finally, it is nearly impossible to sell a self-service combined with automatic car wash without also selling the real estate.

This should be helpful to anyone who owns a self-service combined with automatic car wash and wants to refinance or sell the business.  If you want to buy such a business, be sure to compare this to the cost of building a brand new location.

More on that on another BLOG.

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