Each uses a different aspect or variable of a business to calculate its numerical value either a businesss income, assets, or using market data on similar companies. When the economy is strong and discretionary spending is high, then vehicle owners take advantage of the services provided by this industry. business, you get the benefit of our extensive, curated network of industry professionals, including lenders, Learn more about financial projections, income statements, balance sheets and cash flow. automotive business brokers can help you conduct a successful, lucrative business investment, contact our team today! Buying a quick lube allows business-savvy entrepreneurs a stable, revenue-generating opportunity due to the essential nature of the business. New Constructs, LLC. If you are contemplating a transaction in the auto service sector I can At QUICKLUBE / EXPRESS LUBE we specialize in Full Service oil changes on all makes and models of passenger cars/light trucks and vans as well as some motorhomes. The appeal of a quick lube business is easy to see. These are some of the most efficient cars to ever be driven. He will be charged with overseeing the sales and marketing of Easy On Oil. Buyers obviously won't need all of these documents, but they should still review their own financials. The health of the quick lube industry is tied to the health of the general economy. Keeps equipment available for use by completing preventive maintenance schedules; installing component and part upgrades; controlling corrosion; completing winterization procedures. Small companies can compete successfully by owning favorable locations. Establishing a firm financial foundation will help you maintain realistic expectations about the value of your company (or the company youre hoping to buy). Easy On Oil will serve the San Diego, California market with four convenient locations and will grow into a business with excellent sales within 3 years. Check out our Website for Services and Coupons! In 2013, there were an average of 37.8 vehicles serviced per location, with 32.9 oil changes performed per day. While you may not be able to meet their commercial fuel requirements, you certainly can help them with just about anything else. All financial products, shopping products and services are presented without warranty. Just 29% of vehicle owners take their oil changes to a business other than the dealership where they purchased their vehicle. The parts department will support the service department by allowing the service department to turnaround jobs faster than the competition with all the needed parts in stock and on location. Protect your EATS system with Delo 600 ADF. The average price for a multi-point oil change within the quick lube industry is $36.82. 51 reviews of Hutto Fast Lube & Tire Center "They're fast, efficient, pleasant, and reasonably priced. explaining everything in detail. This does come at a cost though. December 16, 2021. But as a seller, you have to put some number on your operation, especially if you want to be compensated for what you've built, taking into account all kinds of equity. Also our product prices will be gotten after the appropriate retail is determined to make sure that the shelf price represents a value to the consumer and the retailer has a 50% margin. About the author: Meredith has worked as a writer and editor for more than a decade. The incredible breadth of skill sets and knowledge that the management team possesses will allow us to reach our expected goals. You will be redirected once the validation is complete. 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. Jiffy Lube has the most locations in the United States for the quick lube industry, with over 1,900 facilities as of February 2017. buying and selling) over the last 15 years. There are two asset categories, and theyre weighted differently when calculating a businesss total value: Tangible assets: When you think about valuing a small business, the most obvious factors in determining value are the companys material resources and holdings. 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. Marketing programs at lubes should be powerful and . 16% of the oil changes which occur within the quick lube industry feature Valvoline products. The most successful owners invest in these practices to deliver the best service for their customers. We have tapped into real estate where our competitors cannot go. So how do we make money? It's likely that any sellers you're working with will want to see your credit report and basic financial profile. Temple worked as a top sales rep at Chevrolet for over 13 years. There are many services that go beyond the simple passenger and commercial fuel needs of the public and businesses. Once youve determined to open a quick lube business, the first thing to do is to put together a business plan. Franchise Quick Lube, Car Wash, and RE in New Mexico! Overall, a strong business plan provides buyers with important context about your company like your location and mission and captures what key services or goods you offer. The company would need to have sales decrease by more than 30% before we can be unable to satisfy our month to month financial obligations. We plan to price our products to provide the retailer with a 50% maintained margin and offer a product exchange program for current accounts. In 2018, the industry was valued at $7 billion in the U.S., with 33 000 firms operating in the country, employing nearly 90,000 people. How will you separate yourself from the competition in a crowded market? (Digital Dealer), #20. Snappy Lube was founded in 1989 by John Kissner connected to Sinclair gas . Another 22% of operators combine automotive repair with quick lube services. Quick lube retailers offer oil changes and routine vehicle maintenance services at lower prices and faster service times. 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. (Valvoline), #24. Unlike EBITDA, though, youll also add back in the owners salary and owners benefits into your SDE calculation. And, with an ever-increasing reliance on personal over public transportation, vehicle owners do more driving now than ever. Wherever you are in your businesss lifecycle, you'll want to know how to value a small business sooner rather than later. Approaches to a successful small-business evaluation. (IBIS World), #3. (IBIS World), #2. We will also provide cleanings, basic auto maintenance, and emergency repairs for our customers as part of our menu of services. This company offers true quick oil change and a new filter. The two PEGs that own Express Oil LLC now have more than 700 stores. If a synthetic oil change is requested, the price of the oil change jumps to $70.31. Represents the organization in some strategic business meetings, Handles any other duty as assigned by the director, Receives payments on behalf of the company, Prepares financial report at the end of every working week, Purchase supplies and equipment as authorized by management, Monitor office supply levels and reorder as necessary, Take all reasonable discounts on supplier invoices, Monitor debt levels and compliance with debt covenants, Handles financial transaction on behalf of the company, In charge of payment of tax, levies and utility bills, Handles any other duty as assigned by the office, Maintains and repairs automotive fleet and small equipment, Performs oil and other lubricant change on vehicles, Inspects and services automobiles, trucks, and other equipment, Changes and repairs tires and responds to road service calls, Diagnoses heating and air conditioning systems and makes repairs, Inspects suspension and exhaust systems and makes repairs, Assists in ordering and obtaining necessary parts and supplies, Assists with loading and unloading of warehouse supply trucks, Assists with maintenance on vehicles as time permits, Responds to after hour emergencies as requested, Performs other duties and responsibilities as assigned by the technician, Sees to it that clients are attended to and on time, Passes information to the technicians about clients, Reaches out to clients when information needs to reach them. (Car Wash Magazine), #6. Major companies include Jiffy Lube, Pennzoil 10-Minute Oil Change, Valvoline Instant Oil Change, and Texaco Xpress Lube. (Car Wash Magazine), #8. 72% of operators within the quick lube industry operate one location only. If YES, here is a sample Quick Lube business plan template & feasibility report. Cost of incorporating the Business $750. Overall, a strong business plan provides buyers with important context about your company like your location and mission and captures what key services or goods you offer. Meredith has worked as a writer and editor for more than a decade. If you need assistance branding your quick lube business, or for more information about franchising, were here to help. Our partners compensate us. Often, sellers keep their business liabilities and pay off their debt after their business is sold. Victory Lane Quick Oil Change. Industry revenue decreased leading up to the reporting period due to falling prices. No matter what, applications must be filled out and fees paid. Whether you plan on bankrolling your business yourself or finding backing from a lender, no business plan can see the light of day without some cold, hard cash backing it up. Before even thinking about how to value a small business for sale, both sellers and buyers should organize their financial records thats crucial for accurate calculations. They are responsible for the direct employment of almost 90,000 people. Here is a list of our partners. 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. We believe everyone should be able to make financial decisions with confidence. Complies with federal and state vehicle requirements by testing engine, safety, and combustion control standards. Today, the company operates as a wholly-owned subsidiary of Royal Dutch Shell within the parent company Pennzoil. Next, you'll need to outline your business plan and model. These businesses are also not involved in body, paint, interior or glass repair. (Thats why this number is subtracted from the SDE in valuation calculations.) Valvoline operates the second largest quick lube service chain by number of stores in the United States, with Valvoline Instant Oil Change SM, and the third largest quick lube service chain in Canada, with the Valvoline Great Canadian Oil Change brand. If buying and selling businesses is a new frontier for you, you can consult any number of online resources to help you determine the value of a business. The average age of a vehicle owned in the United States is 11.4 years. But if you have more financial information on hand, you can try a more comprehensive business valuation tool that includes both profit and revenue, as well as assets and liability, in the calculation. Regardless of the option you pursue, get the word out with our help. This is where you come in! The keys to success include having quality employees, efficiently managing costs of goods and location, and great customer service. Because the process for determining the value of a small business is complicated, you might want to consider consulting a professional business broker or accountant that specializes in valuation, rather than going it alone. A crowded market for a multi-point oil change jumps to $ 70.31 make. Working with will want to see the two PEGs that own Express oil now! Out with our help with federal and state vehicle requirements by testing engine, safety, combustion... 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