Location: Pasco County, FL
For Sale Website:
Mr. Suds Car Wash is a business for sale in Pasco County, Florida. Details describing the business are as follows located on bizquest.com:
“Great 6 Bay car wash with real estate and property. The business includes one automatic car wash. A must see location. If looking to get into the car wash business you need to look at this one at this price. Very clean and all equipment in good condition. This business appears to be bank owned.”
The spreadsheet includes assumptions made using basic knowledge and research done on the local area and economy. Car wash investment information gathered from www.dultmeier.com was also used in the analysis of the business. The goal of the analysis and spreadsheet is to determine whether or not the business is will be a worthwhile investment. The spreadsheet includes many formulas and assumptions that can be altered to obtain different desired outcomes and projections.
The first tab in the Excel spreadsheet named “IS & BS” includes a pro forma Income Statement and Balance Sheet for the years 2013 to 2020. Included in the workbook is an assumptions tab that details many of the assumptions used in the forecasted income statements and balance sheets. These assumption numbers can be easily changed to suit a different desired outcome. Also included in the workbook is a mortgage table tab where the amortization table and loan payment amounts are calculated. Several financial health ratios were calculated using the numbers from the financial statements. These ratios include: current ratio, acid test, debt to equity, average collection period, average payables period, inventory turnover ratio, return on assets, and return on equity.
Break-even analysis has been computed using a calculated unit of sale and price per one unit. The unit of sale is a total of the different products sold to one customer. These computations have been used to find the break-even units. A WACC calculation has also been included before levering beta and after re-levering beta. The WACC before levering was found to be 8.15% and after re-levering is 4.15%. Also included in the forecasts is a free cash flows statement where the net present value of the business has been calculated. The internal rate of return has also been calculated. In trying to get the IRR equal to the WACC after levering and re-levering, we have concluded that an investment in this business will not be profitable or worthwhile. There are many factors that may not have been taken into consideration resulting in our results, but this is our analysis of Mr. Suds Car Wash.