At the start of 2020, the car wash industry had grown as rapidly as 4.4% since 2015. Even as discretionary spending was down due to COVID-19, many have adapted to the new normalcy. Now, we’re seeing an increase in additional services, such as car washes and auto detailing. If you’ve contemplated whether you should sell a car wash in Charlotte, NC, now could be the time. Be sure to consider these three items before embarking on your transaction.
3 ITEMS TO ASSESS BEFORE YOU SELL A CAR WASH IN CHARLOTTE, NC
The broadening economic landscape will lend way to more buyers interested in car wash businesses for sale. Keep reading to learn what factors make big impacts on your asking price and how you can prepare your car wash business.
1. REAL ESTATE
The location of a car wash business is arguably one of its most important selling points. While some customers are loyal to specific North Carolina car washes, many choose their service providers based on convenience. When preparing your car wash for sale, consider whether it’s close to other Charlotte businesses. Often, car washes are attached or located near a gas station or convenience store, which could influence the asking price. In either case, you’ll need to factor in the number of bays, your building size, and specific real estate arrangement offered in the transaction.
2. SELF-SERVICE CAR WASHES VS. FULL-SERVICE CAR WASHES
Another essential consideration to make is the different services you offer. Are you strictly a self-serve or full-service car wash with a tunnel/automatic function? Do you offer express car wash services, auto detailing, or handwashing? Typically, car washes with added service offerings are more popular business opportunities in North Carolina. You could consider integrating additional services to make your business more attractive to prospective business owners. Since Charlotte can get fairly hot in the summer and cold in the winter, full-service offerings could be a profitable route to invest in. For reasons like this, we recommend devising a strong exit strategy. This will help you recognize opportunities to increase your business value and, thus, earn more money.
3. OPERATIONAL COSTS
Like other small businesses in North Carolina, car washes tend to be profitable business opportunities because they are in-demand year-round and low cost operations. Still, you’ll need to prepare all financial documents before listing your business. Gather your cash flow statement, current balance sheet, profit and loss statement from the previous few years, tax documents from past years, and other important data. As the current owner, you must show proof of consistent financial history. A business broker can help you prepare these documents to ensure you’re taking the right steps in the selling process.
VR Business Brokers of Charlotte recognizes the unique challenges and opportunities presented in the car wash industry. If you’re a business owner looking to exit your car wash, consider partnering with our office to earn top dollar in your transaction. With over 20 years of experience, strict confidentiality policies, and strong marketing programs in place, our services can be invaluable to your business! Contact us to schedule a consultation!