Car Wash Partners Questions
1. Is the car wash industry an attractive industry for consolidation/roll-up? Why? Are there potential economies of scale in the car wash business? Why? What are the potential hurdles to a roll-up strategy in the car wash industry?
2. Do the proposed acquisitions make sense? What price should CWP pay for them? How should the acquisitions be funded - cash/stock/both? Why?
3. Is Tom Curtis the right person to run Car Wash Partners? Who should be added to the management team?
4. How should the Brown, McMillan and Bessemer investments be structured? - Outline some of the important term sheet items they would want to include as investors in CWP. What financing security should they use and why?
5. Overall, do the CWP projections look reasonable, optimistic or pessimistic? What do you think about the projected debt-equity mix in Exhibit 9 - is it reasonable or on the higher/lower side?
6. What is an appropriate valuation for CWP? How much equity percentage should Brown and Burgin receive?