Illustrative 2028E: $2.3B revenue, 23% adj EBITDA margin, 8x EV/adj EBITDA; assumes slower Take 5 growth, limited margin expansion, and higher residual net debt (~$1.9B).

Illustrative 2028E: $2.6B revenue, 25% adj EBITDA margin, 10x EV/adj EBITDA; assumes steady unit growth + operating leverage and meaningful deleveraging (~$1.4B net debt by 2028).

Illustrative 2028E: $2.9B revenue, 27% adj EBITDA margin, 12x EV/adj EBITDA; assumes faster Take 5 scaling, strong ticket/throughput gains, and aggressive debt reduction (~$0.9B net debt by 2028).

Close the sale of IMO (international car wash) and apply proceeds to debt reduction; car wash results move to discontinued ops and the story becomes a cleaner North America core.

Lower leverage + improved narrative clarity can drive multiple expansion and reduce "conglomerate discount."

Progress toward management's target of ~3x net leverage by end of 2026 via free cash flow + divestiture proceeds.

De-risking the equity (lower refinancing risk + lower interest drag) supports a higher valuation multiple.

Take 5 franchise expansion continues to accelerate (e.g., surpassing 500 franchise locations) while maintaining strong same-store sales.

Franchise scaling increases capital efficiency and supports faster network growth without proportional capex.

Sustained adjusted EBITDA margin improvement as scale and portfolio simplification reduce overhead drag and improve mix.

Higher earnings power + operating leverage increases confidence in multi-year compounding.

High leverage and refinancing needs create equity downside if credit markets tighten or execution falters.

Mitigation: Track net leverage trajectory, interest expense trends, maturity schedule, and use of divestiture proceeds for paydown; size conservatively until leverage is clearly declining.

Competitive intensity (national chains and independents) pressures Take 5 pricing, comps, and store-level profitability.

Mitigation: Monitor Take 5 same-store sales, local density strategy, customer experience metrics, and evidence of sustained share gains.

Faster unit rollout leads to weaker site selection, longer ramp times, labor/training strain, or cannibalization.

Mitigation: Watch new-store cohort productivity (where disclosed), service time/throughput, and whether EBITDA margin holds while units scale.

Franchisee profitability weakens (labor, rent, parts inflation), reducing openings and increasing closures or disputes.

Mitigation: Track net store growth, disclosed franchise metrics, and franchise pipeline commentary; prefer evidence of sustained franchise expansion.

Divestitures face regulatory, timing, or valuation issues; proceeds are lower/delayed and leverage reduction slips.

Mitigation: Confirm deal timeline milestones and management updates; underwrite valuation without assuming perfect timing.

A sharp macro downturn reduces miles driven or pushes consumers to defer maintenance, pressuring comps and ticket.

Mitigation: Focus on needs-based resilience but monitor same-store sales trend and consumer sentiment; add only when comps are stable.