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Would You Pay $11M for Two Car Washes?

10 snips

Oct 31, 2025

The hosts analyze a compelling car wash deal in Virginia, listing for around $11 million. They debate whether this high price correlates more with real estate value than operational success. Discussions include labor challenges and the potential for redevelopment. They also explore the intricacies of SBA financing, highlighting how car wash models vary widely in profitability. Additionally, operational demands and environmental concerns add to the complexity of managing such businesses. It's a deep dive into the valuation of unique assets.

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INSIGHT

Reported Cash Flow Likely Inflated By Real Estate

The two Virginia car washes list $1.6M revenue and $940K cash flow, implying an unusually high ~59% margin.
The $10.999M ask likely embeds substantial real estate value rather than pure operating earnings.

INSIGHT

Real Estate Drives Most Car Wash Valuations

Car wash valuations often split into real estate value and operating enterprise value.
Buyers may pay steeply for land while the operating business itself trades at much lower multiples.

ADVICE

Check Real Estate Value For SBA Financing

Verify real estate appraisal to see if SBA 25-year financing applies.
Use the real estate value threshold to plan loan structure and amortization strategy.

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In this episode the hosts dissect a two‑location Virginia car wash business listed at $10.999 M with ~$940K cash flow and debate whether it’s a real estate play or a tough operating bet.

Business Listing – https://www.empirebusiness.com/business-opportunity/10056/2-car-wash-locations-in-virginia-579956/

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In this episode of Acquisitions Anonymous, the hosts dive into a deal: two separate car‑wash locations in Virginia being sold as a package for just under $11 million. The listing reports combined revenue of $1.6 million and cash‑flow of $940K, and includes the real estate. They unpack what drives the valuation, what portion might be real estate vs operations, and whether the numbers make sense for a buyer.

Key Highlights:
- Asking price: ~$10.999 million for two car wash locations in Virginia; listed cash flow ~$940K.
- Combined revenue ~$1.6 million; cash‑flow margin appears very strong (~59 %).
- Real‐estate “kicker” likely substantial: the hosts estimate a big portion of the value may reside in land rather than operations.
- Operational risks: labour management, equipment/maintenance (touchless wash, dryers), vehicle liability, subscription model sustainability.
- Financing nuances: If real estate value is high enough, 25‑year term SBA financing may apply; otherwise harder loan structure.

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