Buying a car wash involves finding the right one under suitable conditions and with an exit strategy in place. Car washes are unique businesses with hidden characteristics that influence success.

Tip #1: Location Location is crucial. Ideal spots are on busy, easily accessible streets and corners. Consider the demographics and type of community.

Tip #2: Wash Format Choose between full-service, express, or self-service based on your investment and involvement preferences.

Tip #3: Find an Expert Work with experienced professionals who know the car wash industry to avoid common pitfalls.

Tip #4: Purchase and Sale Agreement (PSA) Ensure the PSA covers all necessary aspects, including due diligence periods and financing contingencies.

Tip #5: Books and Records Validate all financial records against bank deposits and utility bills to ensure accuracy.

Tip #6: Financing Get pre-qualified by lenders specializing in car washes. Consider seller financing as an alternative.

Tip #7: Due Diligence Use the due-diligence period to investigate all aspects of the business thoroughly.

Tip #8: Car Wash Values Understand the valuation methods for different types of washes and consider the business’s goodwill.

Tip #9: Art Not Science Buying a car wash involves intuition and assessing potential under your management.

Tip #10: Exit Strategy Plan your exit strategy from the start to handle unforeseen circumstances.

Summary Always do your own homework when buying a car wash.

For detailed guidance, reach out to Roger A. Pencek, MBA, at roger@carwashbrokers.com.