MISH headline: Car Wash is Big Business and Private Equity Is Going After It
Sub-headline: Buyout firms are buying and bundling small businesses, from car washes and dentist offices to auto-repair shops and dry cleaners
MISH4 HOURS AGO
Quote from a longer piece from the WSJ which MISH has cut and pasted:
Mammoth saves money by buying cleaning chemicals and other supplies in bulk. It has centralized customer service, recruiting, training, human resources and back-office functions such as payroll and accounting.
Car washes have become a hugely popular real-estate play for individual investors, said Jeff Lefko of real-estate advisory firm Hanley Investment Group, where car-wash deals now account for a significant portion of revenue.
“There is no other operation on a 1-acre site that can do $1 million to $2.5 million in sales and pocket half of that,” he said.