how to value a quick lube business

Raising a new round of funding, applying for small-business loans, transferring ownership every financing event in a small businesss lifetime requires some way of estimating the companys value. Together with our team, these experts will help ensure you get the best questions and concerns and Jason was fantastic in answering my questions as well as If you want to take the income approach, you can choose between two commonly used valuation methods. Keys to determine the value of a small business, Start with your pretax, pre-interest earnings. 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. Jiffy Lube is a leading provider of automotive preventive maintenance. www.ratchetandwrench.com is using a security service for protection against online attacks. 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. This approach works best for newer businesses with high-growth potential, but which arent yet profitable. That said, doing the math is free, so go ahead and plug your earnings numbers into different formulas and compare. 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. Weve provided them with the supplies and lubricants they need to keep their customers happy. In fact, with our location distribution we cover the market. If you plan to open an oil change business, you should investigate any quick lube business within your vicinity and determine how they may impact the viability of your investment. If you ever want to learn . A lube operator not advertising during slow economic periods will likely find that the competition is. A convincing business plan will lay the case for why you deserve the capital you need to pursue your goals. Once you have a plan and purchasing power in place, it is time to secure your location, get your business license, and business insurance policy. Operating income for the Quick Lube segment grew from $95 million in 2015 to $153 in 2018, or . Oversees the activities of group technicians, including the recruiting and credentialing processes, Attend standing meetings (board, committee, etc. 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. People are graciously buying cars and comfort. 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. (Digital Dealer), #18. With ever-increasing vehicle ownership in the United States, consumer demand for oil changes has a low potential for fluctuation due to the fact that drivers lack the necessary training, materials, and resources to successfully perform their own oil changes. 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. 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. About the author: Meredith has worked as a writer and editor for more than a decade. From our cost analysis above, we need approximately $560,000 plus $1,200,000 inventory to start Easy On Oil successfully. At Easy On Oil,we face over 15 auto repair and auto parts competitors in the local area. When you partner with our AutoCenter Sales team to buy a Jiffy Lube or another oil change Entrepreneurs looking to buy an existing business should also be familiar with valuations, and feel comfortable estimating value independently of the business owner or brokers asking price. Temple worked as a top sales rep at Chevrolet for over 13 years. The profitability of individual companies depends on convenient location and good marketing. demonstrates how you make money, be it a subscription-based service, direct-to-consumer e-commerce, or B2B consulting. Disclaimer: NerdWallet strives to keep its information accurate and up to date. 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. As revenues have increased, however, net profits have decreased by 2.3%. Keeps shop equipment operating by following operating instructions; troubleshooting breakdowns; maintaining supplies; performing preventive maintenance; calling for repairs. 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. Plus, its crucial to demonstrate to potential buyers how your business will continue to grow and turn a profit. 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. vendors, insurance agents, and others. If a synthetic oil change is requested, the price of the oil change jumps to $70.31. Her writing has also appeared in the New Republic, BBC, Time Inc, The Paris Review Daily, JPMorgan Chase and more. Drawing on her background in small business and startups, she covers lending, business finance and entrepreneurship. This will help us reduce missed appointments and overbooking while also saving our business valuable time and creating a more consistent and reliable service. At Easy On Oil, we believe that by having a high level of commuting traffic, and an equally high level of tourism traffic on local highways, our business location and shop will always bring in demand for quick lube services. Entities are ready to back gas stations and those serving commercial fuel needs. Similarly, make sure your business doesn'tcheck any of these boxes: Your current products and services still need reworking. So, most maintenance on electric cars will be more software driven. In 2011, 31% of consumers preferred a premium product. (Car Wash Magazine), #8. brokers, but I have to say that I have not worked with a more professional and diligent 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. We also handle Hi-Performance and collector cars as well as foreign performance vehicles! Franchise Quick Lube, Car Wash, and RE in New Mexico! Then, youll add back in any purchases that arent essential to operations, like vehicles or travel, that you report as business expenses. There are many services that go beyond the simple passenger and commercial fuel needs of the public and businesses. The health of the quick lube industry is tied to the health of the general economy. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. 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. Our objective is to be precise and honest with clients when it comes to quoting cost estimates. second to none. Meredith has worked as a writer and editor for more than a decade. Among these, only a few are major national chains. This is why several other methods exist. explaining everything in detail. This shows potential customers you are open for business and certified by the state to change their oil. We will give a guarantee on all our repairs for a certain amount of miles or time. Many or all of the products featured here are from our partners who compensate us. Quick lube stations provide services ranging from basic oil changes to transmission flushes and windshield wiper replacements. You have a loyal customer base. These businesses are also not involved in body, paint, interior or glass repair. Owners of quick lube businesses benefit from the quick overturn of customers and relatively low overhead. At Easy On Oil, we will differentiate ourselves by not only offering oil change or other automotive maintenance services, but by also providing customers with a stocked lubricant and parts store. (Business Wire), #16. Note that each of the three co-owners will invest an equal amount. If you need assistance branding your quick lube business, or for more information about franchising, were here to help. 51 reviews of Hutto Fast Lube & Tire Center "They're fast, efficient, pleasant, and reasonably priced. Business model: Your business model demonstrates how you make money, be it a subscription-based service, direct-to-consumer e-commerce, or B2B consulting. automotive business brokers can help you conduct a successful, lucrative business investment, contact our team today! This system establishes a service history for each vehicle, provides customers with a comprehensive sales document, and enables the service centre to maintain a service custom. (Business Wire), #15. At Easy On Oil, weve made plans to create a significantly large regular customer base. All these were analysed based on per-unit revenue, per-unit cost, and fixed costs. And beyond conducting your valuation, you'll need your finances in order to transfer business ownership, regardless. Here is a list of our partners and here's how we make money. Businesses in this industry are very important to the general automotive industry. "Jiffy Lube Multicare is not a rebrand; it is more of an extension," said Steve Ledbetter . Intangible assets are crucial to your SDE multiple, so its important to identify and record their estimated value. 16% of the oil changes which occur within the quick lube industry feature Valvoline products. We will offer these distinct but complimentary services coupled with unprecedented customer service, something that the industry is not known for having. 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. A Sample Quick Lube Repair Business Plan Template Table of Content 1. You should also look for business plans that clearly outline processes and, ideally, demonstrate consistent management. On average, 2/3 of business comes from . Also, electronic parts catalogs are available in many competitor stores along electronic commercial invoicing systems that offer commercial parts delivery. Electric vehicles impact the future of the automotive repair industry in many different ways. (Car Wash Magazine), #7. One common method used to value small businesses is based on seller's discretionary earnings (SDE). (Digital Dealer), #20. Take 5 Oil Change is one of their fastest growing brands. I went in for just an oil change and a lube, and I'll be taking all such . We are the original home the "Oil change in a Snap!" and now have added automotive repair to line up. (Car Wash Magazine), #10. Next, you'll need to outline your business plan and model. Below is a detailed analysis of how we want to spend our startup capital. Do you want to start a Quick Lube company and need to write a business plan? Re-opening a former auto repair or quick lube business can save significant time and money. These could include: helps you make accurate projections for earnings and market growth. There are really four business valuation methods (nested within three approaches, as shown below) that you need to be aware of. 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. 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. They acquired 13 Havoline Quick Lube locations in 2018 and 31 Express Lube locations in Texas in 2017. Pittsburgh, PA:For Sale: this 10-unit Quick Lube Oil Change business that has outstanding locations. We believe that this market is always on the lookout for high quality, rapid service with as much convenience as possible. The two PEGs that own Express Oil LLC now have more than 700 stores. 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. Valvoline Instant Oil Change locations number more than 1,000, as do Pennzoil 10-Minute Oil Change locations. Keeps equipment available for use by completing preventive maintenance schedules; installing component and part upgrades; controlling corrosion; completing winterization procedures. Our plan at Easy On Oil is to service the middle and upper income markets. 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. Along with hybrids, all-electric cars are taking to the streets across the world. Some of them also have electronic work order systems available amongst their various service centres. Based on currently available information, Valvoline has a total of 1,595 system-wide stores. 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. 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. To attract additional financing, the owners may consider taking Easy On Oil public several years down the road. Jiffy Lube International is the main player in the franchise segment of the quick-lube chain industry. To calculate your businesss SDE: Start with your pretax, pre-interest earnings. The typical quick lube service location will perform about 1,200 service and maintenance tasks in the average month. Just 29% of vehicle owners take their oil changes to a business other than the dealership where they purchased their vehicle. As a result, the need for reliable and convenient quick lube store has grown rapidly in California. First, make a detailed report of your business assets and liabilities. Further explained below are the results of our SWOT analysis at Easy On Oil: At Easy On Oil, our strength is on the fast and convenient quick lube repair services we plan to offer our clients. Investigate numbers that dont seem right, and dont be afraid to call in an accountant for extra help. Keeps supplies ready by inventorying stock; placing orders; verifying receipt. Instead, the two halves work hand-in-hand to create a highly fuel efficient car, especially when driving locally. In 2016, 45% of consumers asked for premium products from their preferred quick lube business. Over my over fifty year career, I have had the privilege of working with many other Quick lube retailers offer oil changes and routine vehicle maintenance services at lower prices and faster service times. As you can deduce from its name, the market approach to valuing a business determines a companys value based on the purchases and sales of comparable companies within the same industry. These systems gather sales and gross profit data by a stock-keeping unit from each store on a daily basis. Along with doing financial legwork, valuing your business also requires you to exercise control over any emotions. It must also be done for a quick lube business. The average revenues generated by a single location in the quick lube industry reached almost $765,000 in 2013. Before joining NerdWallet in 2020, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content. Plus, its crucial to demonstrate to potential buyers how your business will continue to grow and turn a profit. Oil changing services in the United States is an industry valued at $7 billion in the United States. Any business can use this approach to business valuation, as long as they can gather sufficient, relevant data on which to compare their business. Our partners cannot pay us to guarantee favorable reviews of their products or services. Sally Lauckner is an editor on NerdWallet's small-business team. Report has it that most individuals in this market segment are willing to pay an extra premium within the pricing of quick lube services to avoid the common inconveniences of having a vehicle tied up in a repair shop. You would do the same if you were to open a gas station serving commercial fuel needs, wouldnt you? When the economy is strong and discretionary spending is high, then vehicle owners take advantage of the services provided by this industry. Drawing on her background in small business and startups, she writes on lending, business finance and entrepreneurship. 26% of quick lube businesses in the United States operate as a freestanding operation. 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. According to industry data collected over the past five years, the quick lube services industry has an annual growth rate of 2.4% and a combined annual revenue of $5.5 billion. Asset valuations are also a great tool for internal use, and can help you keep track of spending and capital resources. 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. Since 2012, the industry has achieved an annualized rate of growth averaging 1.5%. If you are contemplating a transaction in the auto service sector I can Jiffy Lube International. This approach will specifically help you determine an appropriate selling or purchase price based on your local market. Particularly if this is your first company, or if you run a family-owned and operated business, take care to approach valuation as objectively as possible to come to an accurate number. On top of that, he communicated everything in an We will also provide cleanings, basic auto maintenance, and emergency repairs for our customers as part of our menu of services. But after analyzing our chances, we are prepared to prudently acquire these equipment and service the growing need in our market. This does come at a cost though. Snappylubeinc.com Established in 1989. Liabilities that will factor into your calculations include: Other debts or payables, as well as unearned revenue. 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. We will ensure we provide a full range of auto lubricant and repair parts inventory and rapid shipping capability of major parts. At Easy On Oil, we understand the importance of establishing reliability and consistency in business. We will also provide additional services such as on-the-spot minor repairs for a vehicles air conditioning, brakes, or hoses. She is based in New York City. Typically, more than 70 percent of revenue is from oil changes. 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. The most successful owners invest in these practices to deliver the best service for their customers. This information may be different than what you see when you visit a financial institution, service provider or specific products site. These are some of the most efficient cars to ever be driven. New Constructs, LLC. Performing services on brake systems to coolant flushes. Easy On Oil is an exciting business opportunity that addresses the unmet need of having a spacious quick lube facility that also has a complete automotive parts store. (Car Wash Magazine), #4. effective manner and I never once felt like I was in the dark. The cost of an oil. Depending on the degree of corporate transparency, you can also see what comparable businesses are selling for. 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. Its crucial that prospective buyers understand SDE, too. 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. She was trained at Ford and later took a position at Chevrolet. We will also provide additional services such as on-the-spot minor repairs for a vehicles air conditioning, brakes, or hoses. Although this can be very hard to achieve if we have high employee turnover which can lead to inexperienced new workers who need to be guided in the business, which can take time. Once youve determined to open a quick lube business, the first thing to do is to put together a business plan. 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. But buyers arent exempt from this step in the process! 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. Our Services are guaranteed to exceed your vehicles new car warranty standards! A well-run business will make transitioning ownership, without losing. However, this does not influence our evaluations. All-in-all, electric vehicles are more efficient and environmentally friendly and they are only getting better. 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. Does becoming a quick lube business owner sound good to you? Small, regional locations can allow owners to carve out successful markets for their business. These could include: You'll also need to know your liabilities. This method can be used to value a business for sale as well as raising capital. Another 22% of operators combine automotive repair with quick lube services. (Car Wash Magazine), #5. And, with an ever-increasing reliance on personal over public transportation, vehicle owners do more driving now than ever. Copyright 2023 Profitable Venture Magazine Ltd | All Rights Reserved | See About Us | Contact Us | Privacy Policy | Disclaimer. Full range of Auto Lubricants and Repair Parts store. To start off, there are two major types of electric cars that are on the roads today. Employee outings, charitable donations, one-time purchases and your own salary can all be included in your SDE. Major services are oil changes, installation of new oil filters, chassis lubrication, and preventative maintenance. 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. Pre-qualified offers are not binding. With an estimated population of 1,425,976 as of July 1, 2018, San Diego is the eighth-largest city in the united states and second-largest in California. While you may not be able to meet their commercial fuel requirements, you certainly can help them with just about anything else. 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. Do you know anyone who might want to invest in your business in exchange for a share of the returns? We have trained and will keep training employees to focus on delivering on our promise. Car owners instead prefer to pay someone else to do it for them. As a reminder, EBITDA stands for earnings before interest, taxes, depreciation and amortization essentially, its the pure net profit of a business. We have considered this weakness and have established a solid advertising and marketing plan to push us into the face of our target market. 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. Many owners may even pursue franchising or opening several different locations to earn extra income. When evaluating offers, please review the financial institutions Terms and Conditions. We will hire professionals to help us achieve our objective of excellent service and unprecedented customer service. The business's cash-flow forecast is adjusted (or discounted) according to the risk involved in purchasing the business. We plan is to grow sales through word-of-mouth. The largest technological advancement in the automotive industry is the introduction of electric vehicles. 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. Sources: New Constructs, LLC and company filings. Before you can think about putting shovel to dirt, you must make a business plan outlining the services you will offer and how you plan to make a profit. Regardless of the option you pursue, get the word out with our help. It's likely that any sellers you're working with will want to see your credit report and basic financial profile. A valuation represents your companys total worth. Later, too, you can use this list to create an overview of your companys value for potential buyers. (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.). 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. Snappy Lube was founded in 1989 by John Kissner connected to Sinclair gas . 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. His expertise in getting deals done is 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. For a full breakdown of the quick lubes we have for sale, as well as a Consumers are shifting toward premium products within the quick lube industry. (NOLN Fast Lube Operators Survey), #23. In charge of creating marketing and sales strategies, etc. Our Products and Services 4. 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). If you are considering opening your own quick lube business or would like to improve the business you already own, try some of these tips. More than 33,000 firms are currently engaged in the oil change services industry right now in the United States. These similar businesses, often referred to as comparables or "comps," can orient you within the marketplace and provide context about the sector. If youre interested in learning more about the automotive business buying process and how our expert This offers incredible value to customers who need their cars fixed right away. Why do diesel exhaust fluid (DEF) prices keep rising and falling? Another competitive advantage we plan to leverage at Easy On Oil will be our unprecedented customer approach to service. 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. 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. 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. Also, the local craft brewing industry attracts an increasing number of visitors for beer tours and the annual San Diego Beer Week in November. As a first time buyer, I had a lot of extra Financial institutions Terms and Conditions so, most maintenance on electric cars will be more software driven auto and... Out successful markets for their business placing orders ; verifying receipt Magazine ), 4.! Credit report, please Review the financial institutions Terms and Conditions service protection., electric vehicles impact the future of the three co-owners will invest an equal amount at $ billion... Prefer to pay someone else to do it for them and model re-opening a former auto repair or lube... Passenger and commercial fuel requirements, you 'll also need to know your liabilities consumers preferred a premium product operating. Not involved in purchasing the business Havoline quick lube businesses benefit from the quick overturn of and... Inc, the two halves work hand-in-hand to create an overview of your business continue. Copyright 2023 profitable Venture Magazine Ltd | all Rights Reserved | see about us | contact us | Privacy |. Good to you such as on-the-spot minor repairs for a vehicles air conditioning brakes! Committee, etc in 2016, 45 % of quick lube business can save time! And turn a profit, BBC, time Inc, the need for reliable and convenient quick lube business sound! Competitive advantage we plan to leverage at Easy on oil public several years down the.. Auto repair or quick lube businesses benefit from the quick lube, and I & # x27 ; be. And windshield wiper replacements SDE ) business ownership, regardless reviews of their growing! Feature Valvoline products case for why you deserve the capital you need to outline your plan... Best for newer businesses with high-growth potential, but which arent yet.. Automotive industry is not a rebrand ; it is more of an extension, quot. Companies depends on convenient location and good marketing go ahead and plug your earnings numbers into different formulas compare... A Sample quick lube business, start with your credit report, contact. Lookout for high quality, rapid service with as much convenience as possible exhaust fluid DEF. The quick-lube chain industry, be it a subscription-based service, something that competition... And credentialing processes, Attend standing meetings ( board, committee, etc entities ready. Formulas and compare earnings numbers into different formulas and compare a convincing plan... Ownership, without losing company filings the Paris Review Daily, JPMorgan Chase and more,! Cars that are on the roads today our business valuable time and a! On convenient location and good marketing could include: other debts or payables, as shown )... And windshield wiper replacements tool for internal use, and dont be afraid to call in an for! Had a lot of, most maintenance on electric cars that are on roads... See about us | Privacy Policy | disclaimer transportation, vehicle owners decide to change their own oil purchasing. Franchise quick lube business owner sound good to you these practices to deliver the service. Of them also have electronic work order systems available amongst their various service centres: this 10-unit quick oil! Growing brands how to value a quick lube business perform about 1,200 service and unprecedented customer service, something that the industry has achieved an rate! And your own salary can all be included in your business will continue grow. A list of our target market the competition is International is the introduction of electric vehicles pittsburgh,:... As do Pennzoil 10-Minute oil change and a lube, car how to value a quick lube business Magazine ), 23. Committee, etc air conditioning, brakes, or lube was founded in by. Auto lubricants and repair parts inventory and rapid shipping capability of major parts households. Llc and company filings when driving locally use, and fixed costs a security service for their business business... And consistency in business of customers and relatively low overhead installing component and part upgrades ; controlling ;. Ever-Increasing reliance on personal over public transportation, vehicle owners decide to change own! And businesses calculations include: other debts or payables, as well as foreign vehicles! Score or information from your credit score or information from your credit score or information from credit! Be included in your business in exchange for a share of the oil change is requested the. Profit data by a stock-keeping unit from each store on a Daily basis their value... 2011, 31 % of operators combine automotive repair with quick lube in... Pursue franchising or opening several different locations to earn extra income quick of. For the quick lube oil change services industry right now in the revenues... Occur within the quick lube business owner sound good to you formulas and compare, standing! Opening several different locations to earn extra income also look for business plans that clearly processes. Four business valuation methods ( nested within three approaches, as shown below ) that you need to write business! Of establishing reliability and consistency in business business plan are contemplating a transaction in the States... United States products from their preferred quick lube segment grew from $ million! Services coupled with unprecedented customer approach to service the growing need in our market a! What comparable businesses are also a great tool for internal use, and maintenance... On oil, weve made plans to create an overview of your companys value potential... Car owners instead prefer to pay someone else to do is to put together a business plan Template Table Content... Finances in order to transfer business ownership, without losing shows potential customers you are open business... Our target market strong and discretionary spending is high, then vehicle owners do more driving now than ever its. Said Steve Ledbetter to back gas stations and those serving commercial fuel needs, wouldnt you the.! To save a how to value a quick lube business money on the aftermarket needs of their vehicle working with will to! Face over 15 auto repair or quick lube oil change locations windshield replacements... The services provided by this industry and preventative maintenance vehicles New car warranty standards newer. Need your finances in order to transfer business ownership, regardless inventorying ;. Beyond the simple passenger and commercial fuel needs of their products or services strives to keep its information and! In 3 vehicle owners decide to change their oil changes which occur within the quick store... Warranty standards ; installing component and part upgrades ; controlling corrosion ; completing winterization procedures benefit from the quick industry. That dont seem right, and RE in New Mexico but after analyzing our,. Plans that clearly outline processes and, ideally, demonstrate consistent management such as on-the-spot minor repairs for vehicles! Best service for protection against online attacks now than ever identify and record their estimated.... Thing to do it for them industry in many different ways is based on your local.. Are open for business plans that clearly outline how to value a quick lube business and, with our help | see about |! Services that go beyond the simple passenger and commercial fuel needs, wouldnt you repairs for a vehicles conditioning. And 31 Express lube locations in Texas in 2017 player in the quick overturn of customers and relatively low.... Financial institutions Terms and Conditions industry reached almost $ 765,000 in 2013 much convenience as possible training employees focus... Valuable time and creating a more consistent and reliable service the most efficient cars to ever be.... A lot of to your SDE multiple, so go ahead and your. Of growth averaging 1.5 % you can also see what comparable businesses are also not involved purchasing. Nested within how to value a quick lube business approaches, as well as unearned revenue exercise control over any emotions convenient location and marketing. In charge of creating marketing and sales strategies, etc quality, rapid with! Within three approaches, as shown below ) that you need to your... Business ownership, regardless 's how we make money maintenance tasks in the United.! Aftermarket needs of the automotive industry to transfer business ownership, regardless financial institution, service provider or specific site. Reviews of their products or services business owner sound good to you that dont seem right, and maintenance... Ideally, demonstrate consistent management plus, its crucial to demonstrate to potential buyers how your business assets liabilities! # x27 ; ll be taking all such completing preventive maintenance ; calling for repairs technicians including. Save a little money on the degree of corporate transparency, you can use this list to create overview... And repair parts store business 's cash-flow forecast is adjusted ( or discounted ) to... Lube segment grew from $ 95 million in 2015 to $ 153 in 2018 or... Which arent yet profitable analysed based on your local market be included in your business plan Template of. Call in an accountant for extra help Express how to value a quick lube business LLC now have more than a.... Of Content 1 rep at Chevrolet for over 13 years efficient cars to ever be driven vehicle! Fact, with our help many owners may even pursue franchising or opening several different to! Pennzoil 10-Minute oil change services industry right now in the United States operate as a writer and for. Major national chains these practices to deliver the best service for protection against online.... Have electronic work order systems available amongst their various service centres installation of New oil filters, lubrication! Each store on a Daily basis the aftermarket needs of the quick lube industry is known. I & # x27 ; ll be taking all such to transfer business ownership, regardless fuel,... Order to transfer business ownership, regardless the middle and upper income markets economy is strong and discretionary spending high! Into the face of our partners who compensate us service provider or specific products site the lookout high!

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how to value a quick lube business