San Diegos Spanish and Mexican heritage is reflected in many historic sites across the city, such as Mission San Diego de Alcala and Old Town San Diego State Historic Park. Here's a quick example: If the present value of your current business earnings/excess compensation amounts to $500,000 and you select a discount for lack of marketability of 10%, $50,000 (10% x $500,000) will be subtracted, resulting in an estimated business value of $450,000. Do you know anyone who might want to invest in your business in exchange for a share of the returns? The US automotive oil change and lubrication industry includes about 5,000 companies with combined annual revenue of about $5 billion. Below is a detailed analysis of how we want to spend our startup capital. Pre-qualified offers are not binding. Our objective is to be precise and honest with clients when it comes to quoting cost estimates. We will attract and maintain a loyal customer base through our customer-oriented focus on business. On average, 2/3 of business comes from . (Car Wash Magazine), #6. Based on 7 documents Quick Lube Business means the provision of services for changing oil, lubricants, antifreeze and other automotive fluids for passenger car and light commercial trucks and the provision of maintenance checks and related services. We plan to reduce our employee turnover rate by treating our employees equally and well, giving good benefits and paying them well. We have identified several high priority points that will help you take your business to the next level. Intangible assets are crucial to your SDE multiple, so its important to identify and record their estimated value. (Car Wash Magazine), #4. About 70% of the revenues generated by the average quick lube location come from oil changes when multiple services are available for consumers. That said, doing the math is free, so go ahead and plug your earnings numbers into different formulas and compare. Ensures that the shop is secured at all time, Patrols around the building on a 24 hours basis, Handles any other duty as assigned by the manager, Providing automotive oil change and lubrication services, Providing automotive emissions testing services, Providing automotive rustproofing and undercoating services, Providing automotive safety inspection services, Providing automotive tire repair services, Providing emissions testing with repair services, Spray-on bed liner installation for trucks. Businesses in this industry change motor oil, lubricate the chassis of automotive vehicles and provide other automotive repair and maintenance services, such as tire rotations and liquid flushes. Application and Obtaining Tax Payers ID: Application for business license and permit: Leasing, renovating and equipping our facility: Generating part of the startup capital from the founder: Printing of Packaging and Promotional Materials: Purchase of software applications, furniture, office equipment, electronic appliances and facility facelift: Creating Official Website for the Company: Creating Awareness for the business (Business PR): Health and Safety and Fire Safety Arrangement: Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry. We also handle Hi-Performance and collector cars as well as foreign performance vehicles! 48% of operators within the quick lube industry run a business which combines car washing services with oil changing services. Over half of these competitors offer both auto repair services, although without an inventory store. You should also look for business plans that clearly outline processes and, ideally, demonstrate consistent management. According to National Oil and Lube News, there are 10 national chains with at least 1,000 shops, including brands such as Jiffy Lube, Valvoline Instant Oil, and Pennzoil 10-Minute Oil Change. Quick Lube has significant advantages over the 3 rd party retail model, including: Direct Customer Relationship: As noted above, Quick Lube lets Valvoline own the relationship with its consumers. Meredith has worked as a writer and editor for more than a decade. These services will include full oil changes, lubricate the chassis of automotive vehicles and provide other automotive repair and maintenance services, such as tire rotations and liquid flushes. : The capitalization of earnings method also calculates a businesss future profitability, taking into account the businesss cash flow, annual rate of return, or ROI, and its expected value. Protect your EATS system with Delo 600 ADF. Order Reprints. Live for the first time at our partner ilani Casino! We will offer these distinct but complimentary services coupled with unprecedented customer service, something that the industry is not known for having. (Digital Dealer), #19. Put your license proudly on display at your business. New Constructs, LLC. Also, at Easy On Oil, we understand the need to develop an ethics statement describing our unchangeable stand on honest, trustworthy work. Many or all of the products featured here are from our partners who compensate us. Our partners compensate us. In the United States, about 450 million oil changes are performed each year. Tourism alone in San Diego is a major industry owing to the citys climate, beaches, and tourist attractions such as Balboa Park, Belmont amusement park, San Diego Zoo, San Diego Zoo Safari Park, and Sea World San Diego. (Business Wire), #16. This method is especially useful if your business mostly holds investments or real estate; isnt profitable; or if youre seeking to liquidate. Implement an ongoing training program. Joe handled every aspect and obstacle that presented itself throughout the sales A typical location performs about 1,200 jobs per month. All these were analysed based on per-unit revenue, per-unit cost, and fixed costs. And, with an ever-increasing reliance on personal over public transportation, vehicle owners do more driving now than ever. NerdWallet Compare, Inc. NMLS ID# 1617539, NMLS Consumer Access|Licenses and Disclosures, California: California Finance Lender loans arranged pursuant to Department of Financial Protection and Innovation Finance Lenders License #60DBO-74812, Property and Casualty insurance services offered through NerdWallet Insurance Services, Inc. (CA resident license no. You will be redirected once the validation is complete. (If you used EBITDA to value your business, youll use an EBITDA multiple.) Executive Summary 3. Victory Lane Quick Oil Change. 89% of quick lube locations offer a transmission fluid drain and flush service in the United States, with an average cost of $107.60 per service. Why do diesel exhaust fluid (DEF) prices keep rising and falling? Our 2022 recap of everything that happened in the fuel and lubricant industry. In particular, the Adjusted Net Asset Method calculates the difference between a business's assets including equipment, property, and inventory, and intangible assetsand its liabilities, both of which are adjusted to their fair market values. Conducting a valuation is an excellent opportunity to assess the financial health and potential of your business, or of a business youre hoping to buy. Our diverse management have put plans in place to make sure our regulars feel appreciated by rewarding them for being loyal customers. 16% of the oil changes which occur within the quick lube industry feature Valvoline products. A convincing business plan will lay the case for why you deserve the capital you need to pursue your goals. Most of our competitors have adopted point-of-sale systems in their stores. Easy On Oil is a well-positioned quick lube shop that will serve the needs of the people of San Diego. Direct marketing at a lube allows an operator to specifically direct their promotional energies to the core consumer with the goal of completing a sale. Oil Change Services in the US industry trends (2017-2022) The Oil Drilling and Gas Extraction industry in Canada has endured significant volatility over the five years to 2022. Unless youre a natural-born business or numbers person (or, say, an accountant), business valuation isnt the easiest process. The most successful owners invest in these practices to deliver the best service for their customers. Your SDE represents the true, monetary value of your business, but your SDE multiple values your business according to industry standards. They are responsible for the direct employment of almost 90,000 people. www.ratchetandwrench.com is using a security service for protection against online attacks. Temple Curtis represents sales/management, Helen will focus on the finance/administration section of the business and Aaron will focus on the mechanical aspect of the business. We believe everyone should be able to make financial decisions with confidence. Employee outings, charitable donations, one-time purchases and your own salary can all be included in your SDE. (Valvoline), #24. "Jiffy Lube Multicare is not a rebrand; it is more of an extension," said Steve Ledbetter . demonstrates how you make money, be it a subscription-based service, direct-to-consumer e-commerce, or B2B consulting. With a national footprint of more than 2,000 franchisee owned service centers across the country, Jiffy Lube offers a range of services from oil changes and tire rotations, to everything in between. So, sellers should find out as much as they can about companies that are similar in size, business model, and revenue, if that information is available. These could include: helps you make accurate projections for earnings and market growth. ), Monitor quality and appropriateness of services and care, Provide guidance and leadership for performance guidelines, Manage staffs relations and/or representation, Manages external research and coordinate all the internal sources of information to retain the organizations best customers and attract new ones, Models demographic information as it relates to those who need our services, In charge of promoting the companys image. Quick lube retailers offer oil changes and routine vehicle maintenance services at lower prices and faster service times. Businesses For SaleQuick Lube and Oil Change ServicesLas Vegas, NVNew Arrival$114,900 Opportunity for "3" Quick Lube & Oil Change franchise locations in the Las Vegas & Henderson area. Your particular businesss SDE multiple will vary based on market volatility, where your business is located, your companys size, assets and how much risk is involved in transferring ownership. If youre considering acquiring a business, composing a list of your target's assets and liabilities will ground your decision in sound financial judgment and make sure you and the seller are on the same page with valuation. Establishing a firm financial foundation will help you maintain realistic expectations about the value of your company (or the company youre hoping to buy). The average revenues generated by a single location in the quick lube industry reached almost $765,000 in 2013. Take 5 Oil Change is one of their fastest growing brands. Pittsburgh, PA:For Sale: this 10-unit Quick Lube Oil Change business that has outstanding locations. A quick note on those tax returns: Remember that many purchases you reported as business expenses to the IRS like the cost of travel expenses, a personal vehicle and many other nonessential, non-recurring purchases should be added back to your earnings when calculating your SDE. The most popular brand-name for freestanding businesses is Jiffy Lube. Then, you can demonstrate to potential buyers what makes your business stand out. Quick lube businesses make it easy and affordable for vehicle owners to take care of this need without a large time investment. Together with our team, these experts will help ensure you get the best As a reminder, EBITDA stands for earnings before interest, taxes, depreciation and amortization essentially, its the pure net profit of a business. Her prior experience includes two years as a senior editor at SmartAsset, where she edited a wide range of personal finance content, and five years at the AOL Huffington Post Media Group, where she held a variety of editorial roles. Instead, the two halves work hand-in-hand to create a highly fuel efficient car, especially when driving locally. Check out the ACS reviews left by our clientele. In 2016, 45% of consumers asked for premium products from their preferred quick lube business. Why do diesel exhaust fluid (DEF) prices keep rising and falling? Subscribe to our Blog. Generating Funding/Start up Capital for Easy On Oil. One common method used to value small businesses is based on seller's discretionary earnings (SDE). Aaron boasts of a prosperous career in the automotive industry, 12 years as a Engine Technician at Ford Inc. Lastly, Helen brings 8 years of finance and administration experience. 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