When it comes time to sell your car wash business, there is likely to be a flurry of questions bouncing around in your head regarding the idea. Things like “is my car wash worth buying?”, and “am I making the right decision by selling?” are a few common questions that we receive from our clients here at Car Wash Advisory. But, far and away the most frequently asked question to our team is “how do I get the most money from selling my car wash business?” To provide our customers with some highly requested information, we put together this guide for car wash owners looking to get the highest return possible on the sale of their business. Continue reading to learn more.
You’ve spent years working late nights and making sacrifices to ensure your car wash is a profitable business. One of your biggest priorities before selling your car wash should be to develop an exit strategy. What are you going to do once you’re out of the business, and how much money will you need to accomplish it? In most cases, car wash owners who sell their business do not develop a real exit strategy, and attempt to “wing it”. Ask yourself a few questions when developing your exit strategy, such as: “Do I have all of my information together, including tax records and P/L reports?”, “Does my business look to be clean and performing at max capacity?”, and “Have I discussed with an accountant or real estate broker?”. Asking yourself these questions and coming to a solid answer will allow you to lay a strong foundation for the sale of your car wash.
Selling a business of any kind, including a car wash, for the highest possible price, requires being knowledgeable in finance, marketing, real estate law, accounting, contract details, and so much more. Most people are not versed enough in all of these aspects to get the highest possible amount out of selling a car wash. Hiring a team to handle the sales process is paramount, and that’s exactly what we do here at Car Wash Advisory. Our team of merger & acquisition and car wash industry experts work diligently to help our clients receive a favorable deal on the sale of their car wash.
While getting the most out of the sale of your car wash business is the ultimate goal, sometimes it may not be the realistic goal. There’s somewhat of a “sweet spot” when it comes to the asking price for the sale of any business, and car washes are no different. If the price is too high, no one will take your listing seriously. On the other hand, if the price is too low, then people may think there’s an issue with the car wash, causing them to write your listing off as well. You need to value your car wash based on what it’s actually worth, not what it’s worth to you. In most cases, the sale price of your car wash business will be a multiple of the cash on cash return of the business. If that price is too low due to the car wash underperforming, it might be a good idea to wait until your numbers improve. But, working with an expert like the team at Car Wash Advisory will remove much of the guess work on your end regarding the valuation of your business.
When discussing the sale of your business with a potential buyer, never give them information one piece at a time. Those that buy and sell businesses tend to have a short attention span, and if the seller isn’t prepared, you’ll quickly lose their interest. You should have all of the information regarding your business assembled and packaged in a way that keeps the interest of potential buyers. Never let negotiations drag on due to your lack of preparedness, as further negotiations can result in a deal dying over time. Having a well-put-together sales package can make the process go faster, and ultimately put more money in your pocket.
One of the easiest ways to waste your time when selling your car wash business is to deal with those that aren’t serious about buying. While many buyers may be ready to buy with cash in hand, there’s a perhaps larger swath of individuals who are “window shopping” for businesses to buy. Dealing with those that aren’t ready to buy can be a time-consuming process as you try to weed out who’s got cash in hand and has serious interests and who doesn’t. Relying on an expert M&A professional like Car Wash Advisory can save you countless hours in the process of selling your car wash.
At Car Wash Advisory, our entire business is centered around helping other business owners sell their car wash. We help business owners through the process of selling their businesses, and we’re ready to help you next. For assistance in selling your car wash, or to learn more about the different methods of selling a car wash, contact us online today or over the phone.