A clear plan for your next car wash transaction.

Every number in the initial example is illustrative, including multiples and financing terms. This is not an appraisal, Illinois transaction benchmark, tax calculation or financing approval. Normalized earnings add back expenses already included in reported pre-tax profit, deduct required staff costs, and replace recorded rent with your entered normalized rent. Avoid counting the same cost twice.

Business value uses your multiples; separately valued owned property is added only when selected. Seller closing cash deducts entered payoff, fees, costs and deferred amounts, before taxes. Buyer cash deducts a reserve for ongoing capital needs and fixed-rate amortizing loan payments. Initial cash includes equity, closing costs, immediate repairs and retained operating cash. Working-capital changes, balloons, lender fees and taxes need separate review.

For buyer cash with owned property, the model adds normalized rent back and subtracts additional property costs you enter, then deducts the package loan payments. Enter only costs not already in reported profit or the reserve. The downside case reduces business earnings while this property adjustment stays fixed.

SDE includes compensation for a working owner; cash-on-cash therefore includes that labor benefit. Adjusted EBITDA needs supportable replacement-management compensation. The displayed debt coverage is a planning proxy, not your lender’s DSCR. Review valuation methodology, SBA acquisition financing and IRS sale-of-business guidance, then bring the actual facts to your advisors.