robert roman
Bob Roman
Who is IMO?
IMO operates through a network of 800 sites across 12 European countries and Australia and washes over 30 million cars every year.
TDR Capital, a private equity firm focusing on mid-market, control buyout investments in Europe, acquired IMO/ICWG in 2014. IMO/ICWG was acquired by Roark Capital Group, Atlanta-based private equity firm this year.
IMO/ICWG now operates 150 carwashes in U.S. This includes Car Wash USA Express, Zippy's, Car Wash Express, Supersonic Car Wash, and Goo-Goo’s. Only Mister is bigger with 250 locations.
Arguably, IMO/ICWG poses a potential threat if/when it rolls out its business model.
For example, ICWG’s mantra is safety, quality, environment, and value.
IMO/ICWG quick conveyor model delivers a wash in two minutes, and local operator is on-site each day to ensure every vehicle is prepped and wheels cleaned.
Wash only uses 26 gallons of fresh water and base price is $2.60 U.S.
Consequently, threat is larger companies with sufficient venture capital and expertise to buy up smaller companies and number of competitors shrinks dramatically.
Buying up smaller firms allows consolidators to dramatically lower their operating expenses and achieve even higher rates of growth.
What can mom and pop do about industry consolidation? Prepare.
Preparation may involve making investments in technology, adopting industry best practices, modifying business model and carving out a niche, or planning for an exit.
IMO operates through a network of 800 sites across 12 European countries and Australia and washes over 30 million cars every year.
TDR Capital, a private equity firm focusing on mid-market, control buyout investments in Europe, acquired IMO/ICWG in 2014. IMO/ICWG was acquired by Roark Capital Group, Atlanta-based private equity firm this year.
IMO/ICWG now operates 150 carwashes in U.S. This includes Car Wash USA Express, Zippy's, Car Wash Express, Supersonic Car Wash, and Goo-Goo’s. Only Mister is bigger with 250 locations.
Arguably, IMO/ICWG poses a potential threat if/when it rolls out its business model.
For example, ICWG’s mantra is safety, quality, environment, and value.
IMO/ICWG quick conveyor model delivers a wash in two minutes, and local operator is on-site each day to ensure every vehicle is prepped and wheels cleaned.
Wash only uses 26 gallons of fresh water and base price is $2.60 U.S.
Consequently, threat is larger companies with sufficient venture capital and expertise to buy up smaller companies and number of competitors shrinks dramatically.
Buying up smaller firms allows consolidators to dramatically lower their operating expenses and achieve even higher rates of growth.
What can mom and pop do about industry consolidation? Prepare.
Preparation may involve making investments in technology, adopting industry best practices, modifying business model and carving out a niche, or planning for an exit.
