Car Wash Purchase Evaluation Assistance

This service is for people who are searching for a car wash to buy and are evaluating or investigating the purchase of one or more specific car washes.   This service is primarily for those people who do NOT yet have a signed Offer to Purchase (Letter of Intent) or signed Sale/Purchase Contract.  (If you DO have a signed Offer or signed Contract please call Alan Bussey at 817-267-4726 immediately.)

For those without a signed Offer or Contract we will provide assistance with your analysis of two prospective car wash purchases (two different car washes, two different sellers).  The fee is $500 for up to two prospective purchases.  This fee is 100% applicable to any other fees or charges for subsequent formal processing of your loan application.  Assistance with each additional prospective car wash purchase is on a case-by-case basis.

Purchase evaluation assistance includes, but is not limited to:

1.  Two fillable Excel, OpenOffice, Works, or Lotus pre-formatted templates that you can use to easily evaluate the proforma cash flow of any existing car wash.  Since the template is pre-formatted you can greatly reduce the time that it takes for you to move from financial information collection to analysis results to purchase price offer.  The Proforma Cash Flow Analysis shows the amount of cash available to the new owner, both before and after the estimated loan payments.  We designed these worksheets specifically for car washes.  One of the two templates includes a seven page (seven tabs) preformatted Excel worksheet.  You can easily create multiple Proforma versions for any single car wash, or complete new Proformas for additional car washes.  Can be duplicated by a single user for that user's analysis of one or more car washes.

    A.  Proforma Cash Flow Analysis (in Excel, OpenOffice, or Lotus)
            a.  Common-size spreadsheet for up to five historical periods.  For example, the annual results for the most recent full years and the most recent interim period.  Helps to identify trends in revenue categories and expense categories.  Also helps to identify possibly omitted expenses.
            b.  Purchase Cost and Total Project Cost by asset category.  Includes down payment and loan amount calculation.
            c.  Loan Terms.  Using an assumed interest rate and loan term, calculates the monthly loan payments.
            d.  Proforma revenue analysis.  Multiple revenue categories.
            e.  Proforma operating expense analysis.  Multiple categories.
            f.  Proforma non-operating (other) expense analysis.
            g.  Proforma Net operating Income, Cash Flow to Owner(s), and Banker's "Debt Service Coverage Ratio".  Includes the after-tax net income, after-tax cash flow available to the buyer, after-cash flow available to make the loan payments, and after-tax cash flow available to the buyer after all loan payments.

If necessary we will modify the above Proforma Cash Flow Analysis template to fit each specific prospective purchase, such as adding the details of investor cash distributions.

    B.  Proforma Cash Flow Analysis to Calculate Maximum Purchase Price (in Excel, OpenOffice, or Lotus format).
           This worksheet allows you to easily use the proforma cash flow analysis and standard loan terms to determine the maximum amount that may you want to pay for a given car wash.  You can enter the maximum amount of down payment that you want to make and enter the minimum amount of cash flow that you want to make for yourself.  So, your purchase price offer is unique to you and your needs.      

2.  Assistance with the preparation of the above A. Proforma Cash Flow Analysis, and B. Proforma Cash Flow Analysis to Calculate Maximum Purchase Price, of the two car washes.

3.  Guidance on loan terms that can be expected given the characteristics of each purchase transaction.  We will design your loan terms to your benefit, not the lender's.

4.  Telephone and e-mail discussions with up to two sellers and their respective selling brokers, if any; the seller's in-house accountant, if any; the seller's third-party CPA, if any; the buyer's (your) in-house accountant, if any; and the buyer's (your) third-party CPA; and the buyer's (your) attorney, if any.  Within reason we are also willing to speak with any other parties to the transaction that you might designate. 

5.  Additional helpful forms:
    a.  Salaries and Wages Adjustments.
    b.  Competitor Analysis
    c.  Other computer-fillable forms and custom forms as necessary.
6.  Assistance with the preparation of the  Letter of Intent (Offer to Purchase) or complete preparation of the Letter of Intent (at your option).

7.  Assistance with the preparation of the Contract.

8.  Assistance with the due diligence process after buyer and seller have signed the Letter of Intent (Offer to Purchase) or Contract to Sell/Buy.

We will provide to you additional custom analysis and assistance as necessary for each prospective purchase.

For assistance with your analysis of a prospective car wash purchase, please contact Alan Bussey at 817-267-4726.

Alan Bussey      Car Wash Loans     817-267-4726     fax:  484-737-1092

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  Copyright by Alan L. Bussey     1999 through 2007     All Rights Reserved.