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The first half of 2024 has brought a major and significant slowdown in carwash M&A, along with a stark decrease in the dispersion of acquiring parties. Transaction count is down ~46% and the number of sites sold and acquired is down nearly 40%, both compared to the first half of 2023. By way of most active acquirers, 2024 posted a large increase in deal concentration. Most notably, during the first half of 2023, the most active acquiror by transaction count was El Car Wash, having been the acquiring group in just 11% of the announced transactions. The first half of 2024 had Whistle Express representing a commanding 43% of deals as the acquiring group. In this industry report, we cover all announced M&A transactions in Q2 and provide a candid overview of market trends.
Selling your car wash can be stressful, overwhelming, and emotional. From the sales process itself to receiving your asking price, it can all seem like a minefield that you’re desperately trying to navigate. At Car Wash Advisory, we’ve helped dozens of car wash business owners successfully sell their businesses. Through this experience, we’ve gained the knowledge necessary to prepare our clients for selling their car wash to ensure the process goes as quickly and as smoothly as possible. In this post from the Car Wash Advisory blog, we’ll discuss some steps you should take when preparing to sell your car wash.
Before getting on the road to selling your car wash business, you need to first decide whether or not this is the right choice for you. Is selling your business something that you and your partners are ready to move forward with? Whether it’s financial reasons or an emotional connection to years of hard work, it can sometimes be challenging to come to terms with selling your business. Be sure to think long and hard about your decision, and to discuss the sale of the business with all interested parties.
Once you’ve decided that you are ready to sell your car wash business, you need to get all of the necessary information together. Before you even start discussions with a potential buyer, you need to get all of your operational and financial data on hand, which will help any buyer fully understand your business. Things that could be helpful to have on hand are:
• A profile of your business sites, including the opening date, the model of your car wash(es), lot size, length of the tunnel, type of equipment, point-of-sale system, amount of pay stations, and any other information that may be relevant to a potential buyer.
• Profit and loss statements from the last two years, as well as related information regarding your POS for each site over the same period.
• Yearly balance sheet & other financial statements
• Details of recent renovations or upgrades.
• Details regarding your property; whether it's owned or leased, and if leased, relevant details on terms and rent.
In order to leave a good first impression on potential buyers, you should take a look at your business in the shoes of a potential buyer. How does your car wash business look? Is it well kept, in fully operating order, clean, and trusted by the local community? By ensuring your car wash is in tip-top shape, you’re actively making it a more attractive opportunity for potential buyers.
It’s also important to be realistic about what your car wash has to offer as well. If a brand new car wash just went into business down the street, your potential buyers will want to know how you planned to deal with the competition. They’ll also consider this added competition when deciding on the purchase price. So, get your building painted, have the area landscaped, and ensure all your equipment is up to date before listing your car wash for sale.
When it comes to selling your car wash, you have to set realistic goals and expectations regarding the entire process. That means understanding that the process could take several months and that you may get less than what you’re asking for right off the bat. Once you’ve come to terms with those ideas, you should also consider that once a deal has been accepted, it could be another 90 days or more before it’s closed.
Most people are not versed enough in the areas of accounting, real estate, mergers and acquisitions, and all of the other areas of knowledge that are required to successfully oversee the sale of a business. That’s why it’s important to work with a team of people that are experienced in the sale of car washes. At Car Wash Advisory, our team of car wash M&A experts has helped countless car wash owners sell their car wash business without a hitch. Selling your car wash doesn’t have to be difficult when you work with those experienced in the process. Make the car wash sales process a breeze by choosing the experts at Car Wash Advisory.
At Car Wash Advisory, helping car wash business owners sell their business is what we do. With a team of experts in the car wash, finance, and M&A industries, we make the car wash sales process simple. If you’re ready to get started, contact us today online or over the phone and speak with one of our customer service representatives.
Car Wash Advisory is an M&A firm dedicated to serving the car wash industry. Contact us to learn more or to speak to a car wash broker.
It is best to start preparing several months before you plan to bring your car wash to market. This gives you time to organize financial records, review your POS data, address equipment issues, improve curb appeal, evaluate lease or property documents, and think through your goals for the sale.
Preparation matters because buyers will want to understand the financial performance, operations, property details, equipment condition, and growth potential of the business. The more organized and complete your information is, the easier it is for serious buyers to evaluate the opportunity and move through the sale process.
You should organize profit and loss statements, balance sheets, tax returns, POS reports, general sales reports, monthly car counts, revenue by wash package, membership data, labor costs, utility costs, repair expenses, and any other records that show how the business performs.
POS reports help buyers verify revenue, car counts, average ticket, wash package performance, membership activity, and sales trends. These reports can support the financial statements and give buyers a more detailed look at how the car wash operates day to day.
In many cases, yes. Repairing broken equipment, addressing obvious maintenance issues, improving site cleanliness, and fixing visible problems can help the business make a stronger impression on buyers. A well-maintained wash may also reduce buyer concerns during due diligence.
Not always. Some upgrades may improve buyer interest, but major capital improvements should be evaluated carefully before spending money. If an upgrade is unlikely to increase sale value by more than its cost, it may not be worth completing before going to market.
Curb appeal can influence how buyers view the quality and professionalism of the business. Clean landscaping, fresh paint, working signage, organized vacuum areas, and well-maintained equipment can help buyers feel more confident about the operation.
You should have details about whether the property is owned or leased, lease terms if applicable, rent amounts, renewal options, property taxes, insurance obligations, lot size, zoning, site layout, access points, and any known property-related issues.
Lease terms can have a major impact on value, financing, buyer interest, and long-term business stability. Buyers will want to know the remaining lease term, renewal options, rent increases, landlord obligations, assignment rights, and whether the lease supports continued operation after the sale.
Recent renovations can help support buyer confidence, especially if they improved performance, reduced maintenance needs, or modernized the site. Sellers should document what was completed, when it was completed, what it cost, and whether the improvement affected revenue, car counts, or customer experience.
Yes. Having a realistic understanding of value can help you avoid underpricing the business or setting expectations too high. A qualified advisor can review your financials, site profile, equipment, property structure, and market demand to help estimate a realistic valuation range.
Setting expectations helps you prepare for the time, negotiation, due diligence, and possible delays involved in the sale process. Even after accepting an offer, closing can take time, especially if financing, legal review, property issues, or buyer diligence are involved.
The timeline can vary depending on the quality of the business, buyer demand, financing, documentation, property structure, and sale process. Some transactions move quickly, while others can take several months from preparation to closing.
Common delays include incomplete financial records, unclear lease terms, equipment issues, buyer financing problems, unrealistic pricing, poor communication, due diligence concerns, legal review, and disagreement over post-sale terms.
Not necessarily. Many owners choose to keep the process confidential until the right time because premature disclosure can create uncertainty among employees, managers, customers, and vendors. The timing should be handled carefully based on the sale process and transition plan.
Confidentiality can be protected by limiting who receives information, using confidentiality agreements, sharing sensitive documents only with qualified buyers, and working with an advisor who knows how to manage buyer communication discreetly.
You should understand nearby competitors, new washes under construction, pricing differences, membership offerings, customer traffic patterns, and any recent market changes. Buyers will likely consider local competition when evaluating the business and determining what they are willing to pay.
Competition can affect future revenue, customer retention, pricing power, and growth potential. If a new car wash opens nearby, buyers may want to understand how your business plans to respond and whether the new competition has already affected performance.
Yes. A business profile can help buyers quickly understand the opportunity. It should include site history, wash model, tunnel length, equipment type, POS system, pay stations, lot size, property structure, operating model, and other details that make the business easier to evaluate.
A strong car wash business profile may include the opening date, wash type, number of sites, lot size, tunnel length, equipment brands, POS system, pay stations, vacuum setup, staffing model, hours of operation, membership program details, recent upgrades, and property ownership or lease information.
Yes. Clean, organized, and accurate financials make it easier for buyers to understand performance. This does not mean changing the numbers. It means making sure records are complete, expenses are categorized properly, and supporting documentation is available.
Organized documents reduce confusion, answer questions faster, and help buyers stay confident in the transaction. When information is missing or disorganized, buyers may become cautious, request more concessions, delay closing, or lose interest.
Depending on the transaction, you may benefit from a car wash M&A advisor or broker, accountant, attorney, tax professional, real estate professional, and financial advisor. The right team can help with valuation, documentation, negotiation, legal review, tax planning, and closing.
You are not required to use an M&A advisor, but an experienced advisor can help prepare the business, identify qualified buyers, protect confidentiality, negotiate terms, manage due diligence, and guide the transaction toward closing.
Ask about their car wash transaction experience, valuation process, buyer network, confidentiality practices, expected timeline, fee structure, communication style, and how they would position your specific business for sale.
Avoid making major unexplained changes to operations, neglecting maintenance, sharing sensitive information too widely, setting an unrealistic asking price, ignoring financial documentation, or entering buyer conversations before understanding your goals and the value of the business.
Yes. Poor preparation can create buyer uncertainty, weaken trust, slow due diligence, and make the business appear riskier than it is. Buyers may use missing information, equipment issues, or unclear financials to negotiate a lower price.
You may be ready to sell if you have thought through your financial goals, future plans, partner expectations, and willingness to separate from the business you built. Selling can be emotional, so it helps to define your reasons and priorities before starting the process.
The first step is deciding whether selling is truly the right move. After that, begin organizing financial records, POS data, property information, equipment details, and recent improvement records so the business can be presented clearly to qualified buyers.
Several pieces of information are critical to selling your car wash business. These include:
Other, but less important things will inevitably be required and will come into play during your sale process, such as those listed below. Working with a car wash broker like Car Wash Advisory will help you get this information in order before you meet with any prospective buyers.
The Definitive Quick Guide: Created and Written by Car Wash Advisory Team
The key reasons using an investment bank to sell your business during economic uncertainty is a strategic decision.
