Worked on a few transactions before but never owned one. They can produce some incredible cash flow but mom and pop ones are cash based for the most part so you really need to do due diligence on them.

^[redacted]‌ - You can view self-reported Searchfund transactions under Searchfund Data List page. You can find this under Menu / Searchfund Data / Searchfund List. Sort twice by acquired date to view in descending order for most recent acquisitions. This is by no means comprehensive, but a good place to start if curious what types of businesses have been acquired using the Searchfund model. Here is the direct link:

Searchfund List - https://www.searchfunder.com/searchfund/allsearchfunds

Years ago I looked at some as part of a commercial real estate investment strategy and I realized that there is a lot to understand regarding customer preferences and the competitive landscape. The properties that I was looking at - I ended up passing on - because I realized that the existing service offering that I would be acquiring paled in comparison to others in the same market. As long as you understand what type of customer the asset would appeal to, you'll be in good shape. Some have subscriptions, some have detailing, some have vacuums, some have handheld sprayers... etc. Basically, it is more complex than I thought, and presumably each variety of car wash appeals to a different customer type.

I’ve heard the same thing as Matthew, but there could be a roll up. There’s a really awesome car wash chain in Atlanta. Check it out - it’s called Mister Car Wash. I think there’s an opportunity, but it’s very unlikely to be a home run.

I currently live on Vancouver Island and the people 'making money' on the three I'm familiar with are those in medium size towns that are stand-alone units with bays/self-serve/timer, then more coins (or tokens). The math game here is time per token watching, tightly, the use of things like the wax and soap mixes and, not surprisingly, tight control on who has access to the token machine. The traditional units like Davis's Mister Car Wash, can be tricky given the payroll and demographic analysis that needs to be done.

The three I've seen, well, let's just say the books would put any competent accountant into the ER with a heart seizure. Due diligence with respect to supplies and usage are a big deal.

Hope that helps a bit.

I know that there are independent sponsors targeting acquisitions and roll-ups in the space from talking to private placement folks

I looked at one in an idle moment and had a good chat with the owner. It was touchless, recycled water, fully automated (no attendant), with alerting for low supplies, machine problems etc. He had gone to great lengths to ensure maximum profitability and it was in a very good location, (always a line to use it). He said the problem he had was the cost differential between automation and non-automation. If he hired an attendant it wasn't profitable enough to be "exciting" (his words). But if he didn't hire an attendant then he had to deal with the alerts himself and he also lost revenue during the downtime. This was for a single location though. He figured if he had a dozen locations it would then be worth having one full-time person handling the alerts and it would be a worthy endeavor.

Happy to discuss. I helped a regional chain successfully exit last year and have been involved in the space a bit with other founders looking to exit and sponsors looking to buy. May be able to offer some helpful insights. DM me.

generally high cash flow business but usually they trade at high multiples 8x+

There are basically two types of CW models: 1) Automated car-washes and 2) Wash by hand. Both, if managed properly are good cash flow producers particularly as the subscription model i.e. you pay a monthly fee and get x amount or unlimited amount of washes, takes off. Both have pros and cons: the automated model is higher capex/maintenance but lower labor costs than the hand wash. Obviously location is a key variable in the equation....

I saw this auction posting for car washes and thought you might be interested. It's happening right now, July 6-10 so check it out. https://www.williamsauction.com/property-group[redacted][redacted][redacted]

Interesting thread. I'm guessing the multiples are "messy" as reported...some include real estate, others don't, the ones without real estate may not have rent at FMV (assuming that the seller probably owned the real estate in most instances), obviously the non-reported cash issue for the "mom & pop" locations. Additionally here we are talking multiples, but I often see cap rates used (easy enough conversion). I'd love have some clarity from someone the has bought/sold one or a consultant from the industry.