How do I assess a car wash’s unlimited wash club billing records?
Ask for the member list with start dates, plan types, billing status and cancellations, then match it to bank deposits. Check failed payments, refunds and how often members actually wash. Recurring revenue is only useful if it is real, collectible and sticks around after the owner changes.
Request a member export and a billing report for the same period, then reconcile them with the deposits in the bank account. Differences point to failed charges, refunds, fees or members who were not billed at all. Ask how the billing system flags a declined card, how long the shop keeps trying, and what happens to the member.
Look at behaviour. How many members join, stay and leave? Do many join during a promotion and cancel soon after? Ask for wash counts per member, since heavy users cost more in water, power and chemicals, and light users may cancel. Compare cancellations before and after any price change.
Next, ask where the billing data and customer cards are held. The payment provider and the software hold member data, and a change of owner may require new agreements or member consent. Ask your lawyer how that works. Your accountant can tell you how the unearned portion of memberships should be shown. Ask also what happens to members if equipment breaks down for a long stretch. Ask what share of members use the wash several times a month, because that group costs the most and may leave first if prices or quality change.
Key takeaways
- Reconcile the member list, billing report and bank deposits for the same period.
- Look at cancellations, failed payments and how often members actually wash.
- Ask your lawyer how member data and billing agreements move to a new owner.
Related reading
12 pages on the same subject, grouped by topic.
Buying
- Expert answerHow do I check a used car lot’s inventory records against the vehicles on site?
- Expert answerHow do I check a car detailer’s before-and-after photo records for complaints?
- Expert answerHow do I assess the downtime records of a plastics moulding plant’s chillers and dryers?
- Expert answerHow do I assess a grocery store’s refrigeration maintenance records?
- Expert answerHow do I estimate how much weather affects a car wash’s weekly traffic?
- Expert answerCan I take over the OHIP billing number when I buy a medical practice?
- Expert answerHow can I tell what a medical billing business really earns?
- Expert answerHow do I find a medical billing business for sale?
- Expert answerShould I buy a medical billing franchise or an independent billing business?
- Expert answerHow do I assess a body shop’s frame machine and measuring system condition?
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
Deavo is an advertising and listings platform, not a brokerage, law firm or valuation firm. This page is general information, not legal, tax, accounting or valuation advice, and rules differ by province. Confirm anything you rely on with a qualified professional before you act on it.