On-Market Car Washes:
80 Active Listings
Express Car Wash (37): The average price for an express car wash is $5,037,520.
Full Service/Express Hybrid (4): The average price for this hybrid model is $3,496,666. These establishments provide both full-service and express options.
In-Bay Automatic (15): In-Bay Automatic (IBA) car washes have an average price of $1,238,982. These are automated, self-contained systems.
Self-Service Car Wash (18): The average price for self-service car washes is $753,625. Customers use these facilities to wash their vehicles themselves.
Full Service Car Wash (6): Full-service car washes command an average price of $5,550,000. These establishments provide a comprehensive range of services, including interior and exterior cleaning, often with additional amenities such as detailing.
What Buyers Look for in Today’s Market:
Conversion Potential: Buyers seek car washes with the potential to shift from full-service to express models, enhancing efficiency and profits.
Membership History: Successful membership programs indicating customer loyalty and consistent revenue are attractive to buyers.
Daily Vehicle Counts: High-traffic locations with 15,000-25,000 daily vehicles draw buyer interest, signaling revenue potential.
Off-Market Opportunities: Buyers actively pursue off-market deals for potential cost advantages, making it a strategic investment approach.
EBITDA Multiples:
The following chart shows average multiples of listed and sold car washes in 2023 YTD. These are contingent on a variety of factors, where your specific wash could be worth a larger or lower multiple. These multiples focus primarily on operations and not underlying real estate. Multiples with real estate yield higher results.
The graph above to the right shows the jump in multiple we saw in 2021 during the peak of M&A and more favorable market conditions. Today’s multiples have remained favorable but have faced challenges from buyers working with debt and SBA loans.
New Entries:
Subscription Model: The adoption of a subscription-based business model provides a stable and foreseeable cash flow stream, offering opportunities for optimization and growth.
Expansion: As of 2022, the car wash industry boasted a market valuation of $15.21 billion, with projections forecasting a rise to $15.86 billion in 2023. This upward trajectory underscores the favorable market conditions, with expectations of a compound annual growth rate (CAGR) of 5.7% from 2023 through 2030, ultimately culminating in a revenue forecast of USD 23.79 billion. These figures indicate a promising and sustained market expansion trend, rendering it a compelling opportunity for market entry and potential business ventures.
Anticipated Challenges and Industry Slowdown:
Market Saturation: The previous industry norm of maintaining a three-mile radius between car wash facilities has dissipated, with recent developments introducing new ventures within close proximity, potentially leading to market oversaturation.
Economic Dynamics: Escalating interest rates, average consumer cost increases due to inflation, the resumption of student loan payments, and other consumer-related variables may result in discernible fluctuations in car wash membership subscriptions. These economic factors could lead to a noticeable churn in the customer base.
Where We Come In:
Our car wash team thoroughly tracks the market to know where assets would trade in today’s evolving market. We know that each property is unique, and while these averages are an informed baseline, it does not always factor in real estate, location, and business potential, true values are obtained by looking at all factors and financials. Call or email to receive a detailed analysis of your car wash business and property.
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