16% of the oil changes which occur within the quick lube industry feature Valvoline products. Check out our Website for Services and Coupons! And beyond conducting your valuation, you'll need your finances in order to transfer business ownership, regardless. Conversion: Converting a facility that is open and operating under a different brand. Snappylubeinc.com Established in 1989. As we mentioned earlier, a businesss SDE multiple and the method of valuation varies according to a few factors, including the strength of the industry. In our base case, the global lubricants value pool is expected to grow 44 percent by 2035, driven primarily by increased penetration of higher-margin branded or advanced products, typically synthetics, along with growth in demand from industry (Exhibit 3). Her writing has also appeared in the New Republic, BBC, Time Inc, The Paris Review Daily, JPMorgan Chase and more. This method can be used to value a business for sale as well as raising capital. We plan is to grow sales through word-of-mouth. His expertise in getting deals done is (Car Wash Magazine), #5. We plan to leverage the highest degree of modern technology to manage a full range of automotive lubricants and parts inventory. When evaluating offers, please review the financial institutions Terms and Conditions. Understanding code and the relationship that software has with new vehicles will become an essential skill set for anyone working in the auto repair industry in the future. Groups exist on the state and federal level to help with seed money. 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. Our Business location provides us with a vast market and many opportunities. Just 9% of customers come from a 2-mile radius. If you need assistance branding your quick lube business, or for more information about franchising, were here to help. Although it is a relatively simple process, a lot of car owners do not want to take the time to do it or do not want to get their hands stained with dirt and oil. Temple worked as a top sales rep at Chevrolet for over 13 years. We will also differentiate our business by having 5 spacious bays at every location. No matter what, applications must be filled out and fees paid. These 10 chains account for nearly 60% of the more than 32,000 US locations. Order Reprints. In any of those cases, buyers will be interested in the individual value of your investments or equipment. Asset valuations are also a great tool for internal use, and can help you keep track of spending and capital resources. (IHS Automotive), #22. 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. For that reason, projections of growth for the industry are as low as 0.7% within the forecast period in some markets. The process of changing the oil in a car can be very daunting and not every car owner will be willing to try. For a full breakdown of the quick lubes we have for sale, as well as a (Digital Dealer), #18. (If you used EBITDA to value your business, youll use an EBITDA multiple.) Digital vehicle inspections are a great way to show the value of service to your customers, which can ultimately allow you to sell more services per visit. How will you separate yourself from the competition in a crowded market? Valvoline Instant Oil Change locations number more than 1,000, as do Pennzoil 10-Minute Oil Change locations. Why do diesel exhaust fluid (DEF) prices keep rising and falling? Out of the 450 million oil changes which occur in the United States each year, about 100 million are performed at a quick lube location. You'll need to understand some key definitions first: If youre familiar with EBITDA, youre probably already familiar with SDE, or sellers discretionary earnings, too, even if you've never heard the term. 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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. Corrects vehicle deficiencies by removing, repairing, adjusting, overhauling, assembling, disassembling, and replacing major assemblies, sub-assemblies, components, parts, or systems, such as air conditioning, fuel, emission, brake, steering, hydraulics; completes machine shop operations; making adjustments and alignments including bearing loads, gear tooth contact, valve mechanisms, governors, oil systems, control linkages, clutches, and traction units. 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. 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. 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. Does becoming a quick lube business owner sound good to you? Buying a quick lube allows business-savvy entrepreneurs a stable, revenue-generating opportunity due to the essential nature of the business. (Valvoline), #24. Based on currently available information, Valvoline has a total of 1,595 system-wide stores. However, youre fully capable of valuing your business using your own resources. There are many services that go beyond the simple passenger and commercial fuel needs of the public and businesses. We will ensure all our employees are properly trained and always ready to provide superior service and create a long lasting trust bond with our customers. brokers, but I have to say that I have not worked with a more professional and diligent A well-run business will make transitioning ownership, without losing profits in the process, significantly easier. About 70% of the revenues generated by the average quick lube location come from oil changes when multiple services are available for consumers. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. Later, too, you can use this list to create an overview of your companys value for potential buyers. When the economy is strong and discretionary spending is high, then vehicle owners take advantage of the services provided by this industry. Operating expenses and labor are the two largest costs facing the quick lube industry. #1. NerdWallet's ratings are determined by our editorial team. (Car Wash Magazine), #8. Implement an ongoing training program. We believe that this will establish a healthy, consistent revenue base to ensure stability of the business. Wherever you are in your businesss lifecycle, its important to know how to value a small business. If so, read on about what it takes to become one. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Experts believe that demand in this industry is driven by the amount of driving that consumers do and by new car sales. assign a green, yellow, or red status to each part. To reach our local customer base, we will employ a marketing manager. 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. People will continue to drive regardless of the general economic market. So, established businesses with stable profitability often use this valuation approach. New Constructs, LLC. The two PEGs that own Express Oil LLC now have more than 700 stores. Sources: New Constructs, LLC and company filings. So, most hybrid-electric cars do not ever run on electricity alone. While you may not be able to meet their commercial fuel requirements, you certainly can help them with just about anything else. She is based in New York City. Jiffy Lube International is the main player in the franchise segment of the quick-lube chain industry. They acquired 13 Havoline Quick Lube locations in 2018 and 31 Express Lube locations in Texas in 2017. Pre-qualified offers are not binding. Driving up to a quick lube business for routine maintenance that can be completed quickly saves consumers time and money. Franchising a quick lube business provides you with an established network of vendors and partners without the need to do the legwork yourself. 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. Any business can use this approach to business valuation, as long as they can gather sufficient, relevant data on which to compare their business. Capitalization of earnings method: 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. We plan to reduce our employee turnover rate by treating our employees equally and well, giving good benefits and paying them well. Updates job knowledge by participating in educational opportunities; reading technical and regulation publications. As a fuel and auto shop provider, weve worked with many quick lube businesses to help them succeed. Going with a credit union or other financing structure might work if you cannot find a commercial lender. A convincing business plan will lay the case for why you deserve the capital you need to pursue your goals. "Jiffy Lube Multicare is not a rebrand; it is more of an extension," said Steve Ledbetter . Along with hybrids, all-electric cars are taking to the streets across the world. The annual revenue generated per employee at the average quick lube service location is about $60,000. Most online business valuation calculators use a variation of the income approach. EasyOn Oil will actively provide oil change services in each of our facilities for vehicles. This and many more reasons are why starting your own quick lube business can provide a way to help customers. Often, sellers keep their business liabilities and pay off their debt after their business is sold. 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. All financial products, shopping products and services are presented without warranty. Oil changing services in the United States is an industry valued at $7 billion in the United States. Many owners may even pursue franchising or opening several different locations to earn extra income. These are some of the most efficient cars to ever be driven. Our vision at Easy On Oil is to become the leading business that offers Quick Lube repair services and a well-stocked repair parts shop in San Diego, California. Then, you can demonstrate to potential buyers what makes your business stand out. For public companies, annual and quarterly financial reports are typically accessible online. Over the past decade, improved technology and extraction techniques enabled industry . Our opinions are our own. Major services are oil changes, installation of new oil filters, chassis lubrication, and preventative maintenance. Jiffy Lube International. With the Multicare brand extension, Jiffy Lube is focusing on rolling out brake, diagnostic - and eventually tire - services to its customers. We will give a guarantee on all our repairs for a certain amount of miles or time. Sellers will need to follow steps to properly take inventory of your assets. Our technicians and staff will also talk to our customers about our new offerings and new trends in the business. 3. Franchised Oil Change & Repair Shop in Solano County. At Easy On Oil, weve taken note of all these and have partnered with a renowned banking platform to help us serve our clients comfortably. Plus, its crucial to demonstrate to potential buyers how your business will continue to grow and turn a profit. This means intellectual property, your production line, your delivery truck if its a part of your business, you'll either need to account for it as an asset or a liability. 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. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. Business model: Your business model demonstrates how you make money, be it a subscription-based service, direct-to-consumer e-commerce, or B2B consulting. Please enable cookies on your browser and try again. Our diverse management have put plans in place to make sure our regulars feel appreciated by rewarding them for being loyal customers. Weve analyzed our chances and strengths in this industry to ascertain our market condition and make necessary amends and plan to remedy them. She was trained at Ford and later took a position at Chevrolet. When you partner with our AutoCenter Sales team to buy a Jiffy Lube or another oil change About Your Results automotive business brokers can help you conduct a successful, lucrative business investment, contact our team today! Contact us today! 51 reviews of Hutto Fast Lube & Tire Center "They're fast, efficient, pleasant, and reasonably priced. Marketing programs at lubes should be powerful and . Read more. It must also be done for a quick lube business. I help you make the necessary changes that will remove you from the daily grind and fire-fighting so you can create new value and make additional impact in other areas. Greg's Petroleum works with dozens of quick lubes with our Valvoline and Havoline lines, and we have decades of quick lube experience on our staff. In 2011, 31% of consumers preferred a premium product. This is where you come in! Internet companies or buyers interested in the tech sector can use online directories like Crunchbase and platforms like AngelList, which provide information about startups, funding, investors, and more. Typically, more than 70 percent of revenue is from oil changes. In 2013, there were an average of 37.8 vehicles serviced per location, with 32.9 oil changes performed per day. We will ensure we provide a full range of auto lubricant and repair parts inventory and rapid shipping capability of major parts. 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. All-in-all, electric vehicles are more efficient and environmentally friendly and they are only getting better. The quick lube business may thrive on customer turnover, but quality, efficient service is what brings customers back to their favorite quick lube shops again and again. comprehensive listing of auto repairs for sale near you, give us a call at 1-800-874-5793 for details. In fact, even in states where electricity is produced in the dirtiest way, burning coal, all-electric vehicles are more environmentally friendly than gas-powered. Buying a quick lube allows business-savvy entrepreneurs a stable, revenue-generating opportunity due to the essential nature of the business. But where the discounted cash flow method accounts for more fluctuations in a business's financial future, the capitalization method assumes that calculations for a single period of time will continue in the future. 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. We will attract and maintain a loyal customer base through our customer-oriented focus on business. Great reputation and a long history of loyal employee and customer satisfaction. At Easy On Oil, our revenues will not in any way be sensitive to the overall market condition. to post every listing on the site. We hope to make available the following payment options for our clients; Our plan at Easy On Oil is to spend our funds on licenses and permits including a building permit for renovation on the space, business licenses, health department permit, occupancy permit, and signage permit. The service requires full cookie support in order to view this website. Disclaimer: NerdWallet strives to keep its information accurate and up to date. Keeps shop equipment operating by following operating instructions; troubleshooting breakdowns; maintaining supplies; performing preventive maintenance; calling for repairs. Paul Hodowanic. Just 9% of the sales generated by the quick lube industry come from clients that own vehicle fleets. The business's cash-flow forecast is adjusted (or discounted) according to the risk involved in purchasing the business. We have trained and will keep training employees to focus on delivering on our promise. The average price for a multi-point oil change within the quick lube industry is $36.82. Car owners instead prefer to pay someone else to do it for them. Our 2022 recap of everything that happened in the fuel and lubricant industry. It's likely that any sellers you're working with will want to see your credit report and basic financial profile. Approaches to a successful small-business evaluation. We also need enough business cards for three years for our workers and flyers advertising the grand opening to be distributed and posted in the area. Franchising a quick lube business provides you with an established network of vendors and partners without the need to do the legwork yourself. As revenues have increased, however, net profits have decreased by 2.3%. Easy On Oil will be managed by its three founding partners. So, established businesses with stable profitability often use this valuation approach. 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. To do an asset-driven assessment, youll make a list of your assets and assign them a monetary value. This company offers true quick oil change and a new filter. 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. Before joining NerdWallet in 2020, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content. This approach will specifically help you determine an appropriate selling or purchase price based on your local market. Keys to determine the value of a small business, Start with your pretax, pre-interest earnings. Small, regional locations can allow owners to carve out successful markets for their business. Intangible assets are crucial to your SDE multiple, so its important to identify and record their estimated value. unconditionally recommend Mike and his team. 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. Feeling confident in your appraisal will help you accurately determine how to pitch investors and raise funding, or price your business to find the right buyer. 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. Your best angle is to make a list of the production, property, and resources that comprise your business assets and liabilities, cash and investments, employees and intellectual property. 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. If you ever want to learn . Another 16% of business owners have two locations where they provide services. Similarly, make sure your business doesn'tcheck any of these boxes: Your current products and services still need reworking. 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. 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. The more thorough you are in this step of the valuation process, the more confident youll be in your calculations. These similar businesses, often referred to as comparables or "comps," can orient you within the marketplace and provide context about the sector. Subscribe to our Blog. Drawing on her background in small business and startups, she covers lending, business finance and entrepreneurship. We have tapped into real estate where our competitors cannot go. We understand that starting a business like ours can be very expensive due to the high cost of equipment. Home Business Plans Automotive Sector. Depending on the degree of corporate transparency, you can also see what comparable businesses are selling for. Keeps equipment available for use by completing preventive maintenance schedules; installing component and part upgrades; controlling corrosion; completing winterization procedures. Most of our competitors have adopted point-of-sale systems in their stores. This allows households to save a little money on the aftermarket needs of their vehicle. 1 in 3 vehicle owners decide to change their own oil after purchasing a new vehicle. These could include: helps you make accurate projections for earnings and market growth. person. 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. Note that convenience, steady referrals from local mechanics, and high quality, rapid service are necessary to capture this segment of the market. The average age of a vehicle owned in the United States is 11.4 years. Just 29% of vehicle owners take their oil changes to a business other than the dealership where they purchased their vehicle. (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.). Business plan: A strong business plan helps you make accurate projections for earnings and market growth. Be done for a certain amount of miles or time ascertain our market condition and make necessary amends and to... That reason, projections of growth for the industry are as low 0.7! Is sold will lay the case for why you deserve the capital you assistance. And entrepreneurship efficient cars to ever be driven a healthy, consistent revenue base to ensure stability of the than!, buyers will be managed by its three founding partners profits have decreased 2.3... 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