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Learn everything about carwash appraisals here

Purpose of a Car Wash Appraisal

An appraisal of a car wash may be necessary for several reasons including:
  • Lender mandated as a requirement for loan underwriting
  • Taxation purposes and the determination of “market value” for such
  • Pre-sale seller exit opportunity exploration
  • Ability-to-pay analysis and confirmation
  • Buyer confidence prior to acquisition offer extension
The purpose for having an appraisal done on a car wash will determine the most fitting type of car wash appraisal. Any car wash financing or loan will require an appraisal.


Types of Car Wash Appraisals

Car Wash Appraisals can be either official or unofficial.

A car wash appraisal performed by a state licensed real estate appraiser is defined as “official”.

A car wash appraisal performed by a broker, M&A advisor, or other business or land valuation service other than those licensed as a state recognized appraiser can be considered “unofficial”.

The primary difference between “official” and “unofficial carwash appraisals has far more to do with the purpose and goal of the appraisal than the quality or output.

Key Elements of a Car Wash Appraisal

Regardless of the type of car wash appraisal, certain key elements should be included in all appraisals by all appraisers.
  • Company Background
    • Demonstrating proper general and car wash industry specific knowledge
  • Current Financial Analysis
    • Any appraisal should have an underlying financial analysis based on current and historical financials
    • This financial analysis provides the basis for establishing both current and prospectively forecasted financial performance
    • Comprehensively covers all three primary financial statements (cash flow statement, income statement, and balance sheet)
  • Macro Market Analysis and Opinion
    • Comprehensive and meaningful analysis and opinion of the current state of the national carwash market and both current trends and expected future trends
    • Should specifically include and draw attention to current state of carwash valuations in the United States and the implications the current state of valuations, supply and car wash business demand has on the specific car wash being appraised
  • Multi-Prong Valuation Analysis
    • Including some form of the three primary car wash valuation methods
      • Cost Approach
      • Income Approach
      • Market Approach
    • Separate and Sum-of-the-Parts Analysis
      • The real estate or leasehold interest should be valued on a combined and independent basis from the accompanying core car wash business
  • Final Valuation Opinion
    • Culmination of all research, diligence, and analysis should contribute to a final opinion of appraised value of the target car wash
    • Should truly take into account or intentionally address the exclusion of all and each contributing factors and methodologies present in the appraisal


Get Your Car Wash Appraisal

If you’re in need of having an appraisal of your car wash performed – we’re here to help. We at Car Wash Advisory are not licensed Real Estate Appraisals in every state nationwide.

Car Washes is the only type of business we work with over here. Given our carwash specialization, if we’re not the ones to help you ourselves in achieving your specifically desired car wash appraisal, we’ll let you know right away and would be happy to recommended trusted, carwash-industry-knowledgeable, and expert appraisers that we know and would be happy to vouch for knowing you’d be in the best hands possible.

Get Your Car Wash Appraisal

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