Catherine Bell breaks down car wash investment deals into three tiers: standard deals have 6-8% cap rates and 8-15% cash-on-cash returns, good deals hit 18-30% returns with seller financing, and shark deals target 40% overall ROI with 15-20% unlevered returns.
Standard deal. They're saying a cap rate, the real estate is 6 to 8. The EBITDA is 4x to 6x multiple. The cash on cash with debt is 8% to 15%. DSCR is 1.2 to 1.35. So membership revenue stable but not explosive upside, some But mostly priced in. So example, so that is a standard. A good deal would be 9 to 12%. The EBITDA is a 3x to 4x multiple. Cash on cash is 18 to 30%. DSCR is 1.4. Seller financing is preferred. Upside clear and measurable. So shark, shark deal, 40% ROI. So this is not normal. Unlevered return, 15 to 20%. Clear upside is mandatory.
