Spring2020_SSCWN_web

Around the Wash
Selling Your
Car Wash
Yes, Virginia, there is life
after carwashing
By David Begin
For many reasons, I decided to sell my car washes last
year in 2019. I love being in the car wash industry
and I also love the relationships that I have developed
with industry colleagues, customers and employees. I
knew that it was going to be a difficult transition into
“civilian life”, but I still underestimated the emotional
upheaval that selling your business would bring.
I had every reason to be “crazy excited” about the
transaction, but it also brought me many moments
of sadness, confusion and loss. I learned many lessons
and experiences that were beneficial during that time
and I would like to share them with you.
1. One day, you will not
own your business.
I am surprised when many carwash owners
tell me that they would never sell their business.
They tell me that it is such a big part of their lives
and that they cannot even entertain the notion of
selling their car wash to someone else. I admire
that spirit and the love those types of owners feel,
but the cold hard fact is that you will exit your
business one day. A partner could try and take it
over through a court action or a bad partnership
breakup could occur. You could go bankrupt or
the bank could call in the loan note you have.
Or more likely, you will exit the business lying
in a pine box. It concerns me when owners do
not consider this fact that they will not own the
business one day and have made no provisions
for how they plan to transfer or sell the business.
In my 15 years in the car wash business, I have
seen far too many partnerships with either
non-existent or poorly written
and/or vague buy/sell agreements
that even the best team attorneys
could not defend or decipher. In
my opinion, not developing a
solid exit strategy is being a bit
irresponsible to you and your
loved ones. Leaving the matter
to your family or the legal system
to sort out will more
than likely produce a result
that will be less than
optimal.
2. You should have a sale
price in mind.
There was a sign at our local plumbing supply company
in the “slightly dented” section of bathroom fixtures
that stated: Make us an offer, but do not embarrass
yourself. This comes to mind when I talk to car wash
owners that operate “less than optimum” sites and expect
to get what the mega car wash down the street got
for their sites. You should always have a realistic value in
mind for your wash and if a buyer makes you the offer,
or offers you a premium to that amount, you should seriously
consider it. Get an evaluation for your site if you
need assistance with a sale price. You should always have
an idea of what the market value is for your wash. Then
come up with a price that you will accept if someone
offers to purchase your wash. If the industry
is offering 8x earnings for your type of
wash and you expect 20x earnings, you
will sit on the sidelines for a long, long
time and no one will take you seriously.
A buyer will pay a premium for certain
washes under certain conditions, but they also
need to figure out how to make the wash
profitable when they become the owner.
Overpricing a wash in hopes of someone
giving you that offer communicates to a
buyer that you are not really interested in
a sale. We are fortunate to be in an industry
where other parties are extremely interested
in purchasing our business. Remember, many
small businesses are out there and cannot be
sold, so because car washes are always in demand,
we are part of the fortunate few.
3. Your wash is not “you”.
A business such as your car wash is what you
own and not who you are. This was a hard lesson
for me to learn. For years I wrapped up much of
my identity in being a car wash owner. If you cannot
separate your professional identity from your
personal identity, it will be difficult to sell your
wash when a great opportunity to sell comes along.
Many car wash owners have asked me, “What will
I do and who will I be if I sell my car wash?” You
cannot make rational decisions about selling your
carwash if you have this mindset. You are not your
car wash and you have to be able to “let it go.”
Wise words from
another car wash owner
Jeff Paul, the owner of Valencia Car Wash in California,
spoke to me when I was considering selling
my car wash and offered me some great advice. Jeff
had owned many businesses over the years and told
me that I was a business owner first and a carwash
owner second. He also stated that I would either find
another business or find something else to do that
could be just as fulfilling. This advice helped me to
understand that I loved being a business owner and
that at that time, I just happened to own a carwash.
It gave me the freedom to let go of my current car
washes with the anticipation that I could find something
even more fulfilling in the future. Since selling
the washes, I have created a coaching and consulting
practice that helps other car wash owners become
more efficient and successful. I am looking forward
to the future and the next chapter of my life, and,
yes, there is life after owning a carwash.
David Begin has more than 15 years of experience in the car wash industry as an owner and operator. David has been active in the industry as an association leader. David
is a past president of the Rocky Mountain Carwash Association and the International Carwash Association (ICA). David is a frequent speaker at regional, national and international
carwash conventions and meetings. David is also the co-host of the popular podcast, Carwash, the Podcast. David is also the founder of Begin Insights, a coaching
and consulting firm focused on the carwash industry. For more information go to www.begininsights.com.
14 • SPRING 2020