Self-serve and in-bay automatic, no tag system, lease under 8 years
§ 01 · Observed
What was documented in diligence.
No card reader or tag system — revenue from seller-prepared coin vault estimates only. Bank deposits could not be reconciled to reported car count. In-bay automatic unit 12 years old with documented blower motor failure in the prior 12 months. Self-serve bays generating below-benchmark utility cost ratios due to underutilization, not efficiency. Lease 7 years remaining with no option extending past 7 years — below the SBA cliff for a 10-year term. Phase I required and not yet completed at LOI stage.
§ 02 · Outcome
What happened.
Buyer submitted LOI at 4.2× SDE. SBA lender declined to underwrite due to unverifiable revenue and lease shortfall. Deal terminated at underwriting.
§ 03 · Structural Pattern
How this deal fits the four-pillar framework.
Lower-band conditions on all four pillars: unverifiable earnings, equipment past economic life, unfundable lease, and no membership-based transferable value. Multiple paid was mid-band — the structural condition envelope clearly warranted below 3.0×. Mismatch between asking price and structural score is the defining pattern in car-wash financing failures.
This is an anonymized composite drawn from observable structural patterns in the sample window. It is not a specific deal. The structural pattern, band placement, and outcome reflect commonly observed combinations; a future consented case study will replace this entry.
Industry Atlas
See the band this listing sits against →
Underwriting Playbook
Four-pillar framework →
All scored listings
Index →