And while our site doesnt feature every company or financial product available on the market, were proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward and free. Although there will still be many different tasks to complete with your hands, we will grow and advance with this trend by employing the services of a software engineer in due time. First, though, you have to get your financial information in order. (Digital Dealer), #19. effective manner and I never once felt like I was in the dark. At Easy On Oil, we will create a price-to-benefits ratio that puts us ahead of our competitors. Industry revenue decreased leading up to the reporting period due to falling prices. (Buyers might ask about your discretionary cash flow when you offer them your valuation, so be prepared to include and value each major expense or purchase.). 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. 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. Our partners cannot pay us to guarantee favorable reviews of their products or services. Most locations achieve this figure with just 2-5 service bays available to them. We plan to offer our clients personalized service by offering convenience and rapid service. In comparison, leasing costs are just 9% of the overall expenses for the average location. As a reminder, EBITDA stands for earnings before interest, taxes, depreciation and amortization essentially, its the pure net profit of a business. Intangible assets are crucial to your SDE multiple, so its important to identify and record their estimated value. On average, 2/3 of business comes from . (Car Wash Magazine), #8. Just 9% of the sales generated by the quick lube industry come from clients that own vehicle fleets. Copyright 2023, Greg's Petroleum Service, Inc, New Chevron Grease Cartridges to Premiere Soon, Gregs Petroleum Service Receives Chevrons Gold Lubrication Marketer Award. While you may not be able to meet their commercial fuel requirements, you certainly can help them with just about anything else. everything transaction moving forward and would recommend him to anyone looking to get We all know this chore requires ones hands to get dirty, and for this reason alone, many car owners are perfectly okay paying a quick lube business to do the job for them. take status photos of any vehicle part. (IMR Automotive Research), #9. Youve come to the right place. Familiarity with your industry is crucial for both buyers and sellers. At some point, every vehicle requires ongoing maintenance to keep it functioning properly. 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. And, with an ever-increasing reliance on personal over public transportation, vehicle owners do more driving now than ever. From our detailed research, we hope that provisions for ongoing expenses are adequate to meet our needs as the business generates cash flow sufficient to support operations. In fact, most quick lube operators choose to franchise for this reason. 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. This is another opportunity to seek the counsel of a mentor or a professional advisor, who can provide insight into your businesss assets from a more objective perspective. Depending on the degree of corporate transparency, you can also see what comparable businesses are selling for. Verifies vehicle performance by conducting test drives; adjusting controls and systems. The visitor industry provides employment for more than 160,000 people. Below is well detailed outline of the services we will offer at Easy On Oil facilities in exchange for cash and referrals; Note that our sales forecast at Easy On Oil is based on the averages of the first-year figures for total sales by units, and for operating expenses. This information may be different than what you see when you visit a financial institution, service provider or specific products site. It can be an especially useful approach for rapidly growing businesses and industries. These systems gather sales and gross profit data by a stock-keeping unit from each store on a daily basis. In order to see how electric cars are impacting the future of the automotive repair industry, it is important to understand how they work in the first place. At Easy On Oil, weve made plans to create a significantly large regular customer base. #1. The Oil Change Services in the US industry consists of Conventional oil changes, semi-synthetic oil changes, full synthetic oil changes, automotive oil changes, car washing and cleaning services, other maintenance services and high-mileage oil changes. How much is an oil change? 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 ultimate valuation should be the result of consistent calculations, so dont mix and match formulas. 16% of the oil changes which occur within the quick lube industry feature Valvoline products. Why do diesel exhaust fluid (DEF) prices keep rising and falling? Contact us today! Its crucial that prospective buyers understand SDE, too. Live for the first time at our partner ilani Casino! comprehensive listing of auto repairs for sale near you, give us a call at 1-800-874-5793 for details. Before joining NerdWallet in 2020, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content. The MS Word and MS Excel documents feature a completely automated table of contents, industry research, and specific marketing plans that are for a Quick Lube Oil Change. Plus, its crucial to demonstrate to potential buyers how your business will continue to grow and turn a profit. The cost of an oil. How to Valuate a Business One way to calculate a business's valuation is to subtract liabilities from assets. Small companies can compete successfully by owning favorable locations. Because youre familiar with your own equipment and production, you can make pretty accurate estimates of each of your assets value and depreciation. Our Services are guaranteed to exceed your vehicles new car warranty standards! With the Multicare brand extension, Jiffy Lube is focusing on rolling out brake, diagnostic - and eventually tire - services to its customers. Easy On Oil is a well-positioned quick lube shop that will serve the needs of the people of San Diego. A well-run business will make transitioning ownership, without losing profits in the process, significantly easier. And with hundreds of millions of vehicles on U.S. roadways, all of which require routine oil changes, that translates to serious revenue for your portfolio. The largest technological advancement in the automotive industry is the introduction of electric vehicles. Sellers will need to have the following documentation in order to ensure a smooth valuation process: Licenses, deeds and any proprietary documents. 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. If YES, here is a sample Quick Lube business plan template & feasibility report. Home Business Plans Automotive Sector. To do an asset-driven assessment, youll make a list of your assets and assign them a monetary value. (Car Wash Magazine), #4. Operating expenses and labor are the two largest costs facing the quick lube industry. Also, the local craft brewing industry attracts an increasing number of visitors for beer tours and the annual San Diego Beer Week in November. The profitability of individual companies depends on convenient location and good marketing. Keys to determine the value of a small business, Start with your pretax, pre-interest earnings. Later, too, you can use this list to create an overview of your companys value for potential buyers. Additionally, franchising a business comes with an entirely different set of understandings and obligations. Often, the site is good, but the former business either lost their lease, got tired of the business, or was operating without a National brand behind them. The scoring formulas take into account multiple data points for each financial product and service. 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. (Business Wire), #16. If you're selling, your prospective buyer will need to understand how you generate revenue and will continue to. Establishing a firm financial foundation will help you maintain realistic expectations about the value of your company (or the company youre hoping to buy). We believe everyone should be able to make financial decisions with confidence. Easy On Oil boasts of a unique and well versed management team that will allow us achieve our objectives. Note that industry operations are labor-intensive: annual revenue per employee is just $60,000. A valuation is a suggestion of value, but your business model shows potential buyers how theyll actually reach their customer base to generate revenue if they purchase your company. Keep up to date on our new listings and business opportunities. (IBIS World), #2. Oversees the activities of group technicians, including the recruiting and credentialing processes, Attend standing meetings (board, committee, etc. 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. 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. Electric vehicles impact the future of the automotive repair industry in many different ways. add technician notes to the photos. When only stand-alone quick lube locations are examined in the industry, about 5,000 firms currently operate in this space and produce revenues of about $5 billion annually. The two PEGs that own Express Oil LLC now have more than 700 stores. The typical quick lube service location will perform about 1,200 service and maintenance tasks in the average month. It's called Jiffy Lube Multicare. If you are contemplating a transaction in the auto service sector I can 8 Stalls & Pits! Just 29% of vehicle owners take their oil changes to a business other than the dealership where they purchased their vehicle. They are responsible for the direct employment of almost 90,000 people. The remaining are small privately-owned establishments. There are many things that go into running a quick lube business, but there are three key items you should focus on if you want to retain customers. Over my over fifty year career, I have had the privilege of working with many other As franchises in the industry go, Victory Lane keeps it simple. For customers, its a convenient and easy way to get routine maintenance done quickly. Routine maintenance services like adjusting tire pressure, changing windshield wipers, replacing light bulbs, and topping off auto fluid levels are usually done in 10 minutes or less. Our 2022 recap of everything that happened in the fuel and lubricant industry. If you ever want to learn . We plan to let our customers know that we will only provide necessary repairs and service and will not try to charge them for services that they dont need. Our Products and Services 4. Consumers are shifting toward premium products within the quick lube industry. Performing services on brake systems to coolant flushes. Regularly getting the oil changed is one of the most important maintenance tasks you can do for your car, and fortunately, it's one of the cheapest. Youll calculate your businesss value with a specified formula, taking into account your assets, earnings, industry, and any debt or losses. At Easy On Oil, our major weaknesses will be the time and resources it will take us to establish and publicize our services to the people of San Diego. Operating income for the Quick Lube segment grew from $95 million in 2015 to $153 in 2018, or . In total, Driven Brands has 1,100-plus locations across North America. Investigate numbers that dont seem right, and dont be afraid to call in an accountant for extra help. Meredith has worked as a writer and editor for more than a decade. Looking to make a smart automotive business investment? To start off, there are two major types of electric cars that are on the roads today. 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. For a full breakdown of the quick lubes we have for sale, as well as a Unlike EBITDA, though, youll also add back in the owners salary and owners benefits into your SDE calculation. Succeeding in business is never easy theres a reason why most small businesses never make it past three years but if you do it right, success wont be far away. In charge of creating marketing and sales strategies, etc. Protect your EATS system with Delo 600 ADF. Every state has a different process when it comes to business licensing. Cost for basic insurance policy covers, permits and business license $100,000, The cost of acquiring a suitable Office facility 6 months (Re Construction of the facility inclusive) $120,000, The budget for equipping the office (computers, software applications, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) $10,000, The price of purchasing of the required software applications (CRM software, Accounting and Bookkeeping software and Payroll software et al) $12, 000, The Cost of Launching our official Website $4,000, Our budget for paying at least five employees for 6 months plus utility bills $70,000, Additional Expenditure (Business cards, Signage, repair equipment, Adverts and Promotions et al) $234,000. We will create strong vendor relationships with the most reputable vendors in terms of shipping time of major parts. Long wait for services and parts wont b entertained at East On Oil as we strive to offer the best service and product in our market. 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. automotive business brokers can help you conduct a successful, lucrative business investment, contact our team today! Liabilities include any debt or outstanding credit on your businesss books, and they detract from the overall value of a business. But buyers arent exempt from this step in the process! We will also strengthen our relationships with local mechanics to capture repair needs of the local and highway traffic. Our goal is to capture a majority of the market in little or no time. For the average business, they account for 60.7% of total expenses. Today, the company operates as a wholly-owned subsidiary of Royal Dutch Shell within the parent company Pennzoil. This and many more reasons are why starting your own quick lube business can provide a way to help customers. No matter what, applications must be filled out and fees paid. (Car Wash Magazine), #6. Our key advantage in San Diego will be the high-quality, rapid, and convenient quick lube service we plan to offer. There are about 250 million vehicles on the road which will require services at some point that can be provided by a quick lube location. Some locations may provide additional vehicle maintenance services, such as radiator flushes, brake line cleaning, and power steering fluid flushing. We do not intend to offer expansive vehicle repair services as our facilities will not be equipped to run full automotive diagnostics and repairs. Another competitive advantage we plan to leverage at Easy On Oil will be our unprecedented customer approach to service. For equipment or other depreciating assets, that value is usually somewhere between the sale price and the depreciated value. 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