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RICHMOND, Va./BALTIMORE — Matrix served as the lead advisor on the recapitalization of Watershed’s 30 express tunnel sites.

By Kyle Alexander
Kyle Alexander is the Multimedia Journalist of Professional Carwashing & Detailing magazine.

Published: August 12, 2024

RICHMOND, Va./BALTIMORE — Matrix Capital Markets Group Inc., an independent investment bank, announced in a press release it served as lead advisor on the recapitalization of Watershed Carwash’s portfolio comprised of 30 express tunnel carwash sites.

The McDowell family built its first express tunnel wash in 2009 under the Clean Freak brand.

The management team continued to scale the platform in the Arizona market, which was ultimately sold to True Blue Car Wash.

After selling the portfolio in 2020, the McDowells embarked on building the Watershed platform in both Texas and Oklahoma, where the Watershed portfolio has a significant presence.

Trevor McDowell, president and CEO, commented, “The Matrix team offered unparalleled support and deep insights during the entire process, from the initial valuation project to the execution of the recapitalization mandate. Their unwavering dedication and adaptability, along with their efficient execution, resulted in a positive outcome for all stakeholders. Their comprehensive expertise and experience in both valuation assignments and capital advisory mandates played a crucial role in us selecting Matrix and ensuring success in a complex recapitalization.”

In its role as sole intermediary, Matrix provided valuation and capital advisory services to Watershed including ASA valuations, financial modeling and sensitivity analysis, capital structure assessment, negotiation with counterparties and placement of debt capital.

The capital advisory assignment was managed by John Whalen, head of Matrix’s capital advisory investment banking group, Ryan Weir, director, and Garrett Novotny, CFA, CPA, senior analyst.

The valuation assignment was managed by Sean Dooley, CFA, ASA, managing director, Matrix’s downstream energy and convenience retail investment banking group, Stephen Lynch, CFA, CPA, managing director, and Nate Wah, CPA, senior associate.

Weir and Dooley added, “We very much appreciate the trust that Watershed placed in us to advise them on the valuation process and recapitalization. Watershed is a great operator, and the recapitalization represents a transformational moment for the company as it further scales its platform. Matrix was privileged to work with the Watershed Team.”