I run a small chain of car washes in the Midwest and I'm getting ready to sell in about 2 years. My problem is that I keep hearing about other deals happening in my industry (other car wash owners selling, new builds, etc.) but I have no idea how to systematically find those opportunities before they hit the market. I'm not looking to buy a competitor, but I want to know what the deal flow looks like in my space so I can time my exit better. How do you all source quality deal flow in your industry? Is it all just relationships, or are there actual tools or networks that work?
Deal Sourcing
How to find quality deal flow in your industry
Honestly, for a business your size, the best deal flow intel comes from your own suppliers and equipment vendors. They know who's upgrading, who's struggling and who's quietly looking to exit. I'd start there before any fancy database.
Relationship banking. Go have coffee with the commercial lenders at your local community banks. They see the deals before anyone else and are usually happy to chat if you're not a direct competitor. Just don't be weird about it.
Following bc I'm in the same boat but in landscaping. I tried one of those paid deal platforms and it was 90% tire kickers and people selling overpriced junk. Not worth the monthly fee imo.
Wait, you're selling in 2 years but want to buy "quality deal flow" now? If you're not buying, what's the actual goal? Are you trying to benchmark valuations or are you secretly looking to roll up a compettor?
Both, honestly. Benchmarking valuations is the main thing, but if the right competitor came up I wouldn't say no. I just don't want to be the guy who finds out after the fact that the wash 30 miles away sold for double what I'm asking.
MuddyBoots99 that matches my experience exactly. The only platform I've found useful is the one my industry association runs, and it's not really a platform, it's just a mailing list where members post opportunities. Low volume, high signal.
OP, if benchmarking is the real goal, get a confidential valuation done by a firm that specializes in car washes. It's a few grand but it gives you a baseline to compare against whatever you hear through the grapevine. Otherwise you're just chasing rumors.
Honestly the "I'll know it when I see it" acquisition strategy is how people end up paying too much. But I get it, timing exits is hard.