2024 Car Wash Mergers and Acquisitions Report: Exploring the U.S. Market
The U.S. car wash industry is experiencing significant transformations as outlined in the 2024 Car Wash M&A Report by Car Wash Advisory. In the past five years, there have been notable technological advancements, new developments, and increased institutional investment in the sector. These changes have had a profound impact on operations, valuations, and market strategies.
Despite concerns about market saturation, the car wash sector still shows a promising 50% growth opportunity for express exterior car washes nationwide. Strategic site selection and innovative operational practices will be crucial for capitalizing on this untapped market potential.
Investment activity, particularly from private equity and institutional investors, has been a driving force behind industry changes. Capital injections have fueled acquisitions and operational improvements, leading to innovations like license plate recognition and membership programs that enhance both customer experiences and operational efficiency. However, there has been a recent decline in transaction volume as investors take a more discerning approach in a maturing market.
Valuations in the car wash sector have become more dynamic, with shifts from stable profits to a landscape influenced by public offerings, sale-leasebacks, and heightened competition. Despite these fluctuations, valuations have stabilized around 10–12x EBITDA, indicating strong investor confidence in long-term growth prospects.
The industry remains fragmented, with many car washes still being operated by individuals with fewer than 10 sites. This fragmentation presents opportunities for consolidation and innovation, shaping the future of the industry. Overall, the 2024 Car Wash M&A Report provides valuable insights into the evolving landscape of the U.S. car wash industry.
