business budget & valuation analysis...automotive lubricants market was valued at $64,716...

2019

DanielAlvarez

Executive Financial Officer, LLC

8/21/2019

Business Budget & Valuation

Analysis

Business Budget & Valuation Analysis

Executive Summary


Daniel Alvarez



2170 W State Road 434 Suite 350

Longwood, FL 32779

407 774 0861

Chelita’s LLC

Indexes by Section

Introduction ………………………………………………………………………………………. Page 1 – 3

Section 1 Summary of Estimate of car was, oil changes, car sales, used/new tires …………... Page 4 - 6

I. Revenue 2019

A. Used Car Sales

B. Tires – Used/New

II. Cost of Goods Sold

A. Car Wash & Oil Changes

B. Vehicles

C. Tires – New Used

III. Operations Expense

Section 2 Business Evaluation Planning Estimate ………………………………………….…… Page 7

Section 3 Return on Investment (ROI) ……………………………………………………….…. Page 7 – 8

5 Year Budget Estimate ………………………………………………………………………….... Page 9

Future Project Budget (Cars) …………………………………………………………………….. Page 10

Future Project (Tires) ……………………………………………………………………………... Page 11

Summary of Estimated Budget, Cars & Used Tires Project …………………………………… Page 12

Linear Graph Projected Trend Line (Estimated) …………………………………..…………... Page 13

Profit & Loss Financial Statement (June 2018 – May 2019) ……………………………….…... Page 14

Profit & Loss Financial Statement (January 1st, 2019 – June 30th 2019) …………………....… Page 15

INTRODUCTION

Fundamental Analysis and information

Car Wash

According to market research from IBIS world, US car wash industry has 2.9% annual

growth. The growth is huge when we consider 8 million cars are washed daily. According to the United States Census Bureau, Americans spend $5.8B a year at car

wash facilities.

In the last decade, more than 70% of car owners started using car wash facilities instead

of washing cars at their home premises.

In the United States, more than 72% of drivers use professional car wash services

frequently and conveyor car wash is the most revenue generating service.

Page 1

LUBE / Oil Change

Automotive Lubricants Market was valued at $64,716 million in 2015, and is expected to reach $89,585

million by 2022, registering a CAGR of 4.8% between 2016 and 2022.

U.S. automotive lubricants market volume by product, 2014 - 2025

Page 2

Estimated market size of automotive lubricants in the United States

from 2014 to 2025 (in billion U.S. dollars)

Modified Profit & Loss Estimate – Explanation

2019 Revenue was modified by using an estimate average for the last 6 months of the year 2018 and the first 6

months of the year 2019 which combined represent one business year.

The profit & loss from June 2018 through May 2019 is $384,879 (1 Business Year); We estimated a 7.4%

increase for the 2019 year-end estimate to $413,346 (From Jan to Dec 2019). (See addendum #5)

Net Income Per Books - $19,294 (June 2018 to May 2019)

ADD:

Depreciation 7,464

Amortization 12,323

Meals 50% 637

Auto Gas 2,000

Officer Benefit 33,000

Interest 3,388

Extraordinary Expense(s) 25,000

(Loan from officer)

TOTAL $83,812

$103,106

Page 3




Longwood, FL 32779

407 774 0861

Sec 1: Summary of Estimate of car was, oil changes, car sales, used/new tires

I. Revenue 2019 – Revenue was modified by using an estimated average for the last 6 months of the year

2018 and the first 6 months of the year 2019 which combined represents one business year. The revenue

modification stated herein allows a more effective interpretation of the subsequent years in the

projection and budget analysis.

The year 2019 was considered the base for the 2020 – 2023 Budget Analysis

The estimated revenue for the year 2019 is $413,346. The revenue increasements for the year

subsequent are as follow;

25% Increase for the years 2020 & 2021 as compared to the prior period.

20% Increase for the year 2022 as compared to the prior period

15% Increase for the year 2023 as compared to the prior period.

The year-over-year revenue growth presented above was merely for the Car Wash and Oil change

business. (See Addendum #1)

A. USED CAR SALES

The estimated revenue for car sales came about using a very conservative approach based on prior

owners’ history.

The car sale estimate for the next 3 Years following 2020 are as follow;

Year 2020 - sale of 4 vehicles per month net income $1,000 per car

Year 2021 & 2022 – sale of 6 vehicles per month net income $1,000 per car

Year 2023 - - sale of 8 vehicles per month net income $1,000 per car

(See addendum #2)

Due to having a mechanic, Carwash/Detail & Tires; gross profit margin would be higher than if each

were independently operated.

Page 4




Longwood, FL 32779

407 774 0861

B. TIRES – Used/ New

The estimated revenue for the used & new tires was based using a very conservative approach

For Used & New Tires the following year was estimated at;

2020 Monthly Sales $2,500 – Net Income $1,500 per month

2021 Monthly Sales $2,500 – Net Income $1,500 per month

2022 Monthly Sales $4,666 – Net Income $ 2,500 per month

2023 Monthly Sales $4,666 – Net Income $ 2,500 per month

(See Addendum #3)

CONCLUSION

This projection was constructed of the following gross income generating from the following product

and services;

i. Car Wash

ii. Oil Change

iii. Car Sales

iv. New/Used tires

See grand total per year 2020 – 2023

(See addendum #4)

II. COST OF GOODS SOLD

A. CAR WASH & OIL CHANGES

Cost of Goods Sold – The COGS was estimated based on 2019 modified costs only using oil changes

and car wash. The standard percentage for each year was estimated at 31% of the revenue.

(See addendum #1)

B. VEHICLES

The cost of Goods Sold of selling vehicles was estimated on 83% of the gross sales to generate a net

income of $1,000 per car being sold.

Page 5




Longwood, FL 32779

407 774 0861

The used car projection remains constant for all years based on budget fundamentals.

In addition, Chelita’s LLC/ Splash N Dash represents a great benefit on the costs because it can

contribute with the cleaning, detail, mechanic, oil changes etc.

( See addendum #2)

C. TIRES – New/Used

The new and used tires cost of goods was using a 40% of the gross revenue to generate a net income of

$1,500 per month for the years 2020 and 2021. Subsequently, $2,500 per month for the years 2022 and

2023.

The advertising campaign will be recommended to increase revenue using social media, promotion etc.

III. OPERATIONS EXPENSE

Operating Expenses – was estimated based on 2019 modified expenses only using oil changes and car

wash. The standard percentage for each year was estimated at 35% for the years 2020 & 2021.

And 40% for the years 2022 & 2023 (See addendum #1)

CONCLUSION:

Addedum #4 represents the summary of the estimate budget for the projection from the year

s2020 to 2023; This project reflect the GRAND TOTAL for the years to come.

Page 6




Longwood, FL 32779

407 774 0861

Sec 2: Business Evaluation Planning Estimate

What you see below is a low, mid and high range valuation for your business based on date from

thousands of transactions for businesses in the last 5 years. The high range shows the top price paid for a

business, mid-range shows the average and the lowest paid for a similar business.

This information was based on modified estimate budget of the year 2019 and the format of valuation

analysis from Digital Exits

Result – What is your business worth

High Valuation Range $658,770

Mid Valuation Range $548,975

Low Valuation Range $439,180

Sec 3: Return on Investment (ROI)

Return on investment is based on the net income modified estimate budget of 2019 to 2023.

Attached Addendum #1 the following net income of

2019 – $107,354

2020 – $175,672

2021 – $219,590

2022 – $224,757

2023 – $258,470

Total $985,843

Page 7




Longwood, FL 32779

407 774 0861

Page 8

Low Valuation Range

HighValuation Range

Mid Valuation Range

High Valuation Range

Profit & Loss

Revenue 413,346 100.00% 516,683 100.00%

Cost of Sale (131,022) 31.70% (160,172) 31.00%

Operating Expenses (174,970) 42.33% (180,839) 35.00%

Net Income 107,354 25.97% 175,672 34.00%

25%

22%

3%

Profit & Loss

Revenue 516,683 100.00% 645,853 100.00%

Cost of Sale (160,172) 31.00% (200,214) 31.00%


Net Income 175,672 10.52% 219,590 34.00%

25%

25%

25%

Profit & Loss

Revenue 645,853 100.00% 775,024 100.00%

Cost of Sale (200,214) 31.00% (240,257) 31.00%


Net Income 219,590 34.00% 224,757 29.00%

20%

20%

37%

Profit & Loss

Revenue 775,024 100.00% 891,277 100.00%

Cost of Sale (240,257) 31.00% (276,296) 31.00%


Net Income 224,757 29.00% 258,470 29.00%

15%15%

15%2023 Operating Expenses increased Compared to 2022

2022 Revenue Increased Compared to 2021

2022 Cost of Sale Increased Compared to 2021

2022 Operating Expenses increased Compared to 2021

Estimate 5 Year Budget (2022-2023)

2022 2023 Variance

116,253.56

36,038.60

46,501.43

33,713.53

2023 Revenue Increased Compared to 20222023 Cost of Sale Increased Compared to 2022

Addendum # 1 Page 9

83,960.91

5,166.82

129,170.63


MODIFIED 2019 2020 Variance

103,336.50

5,868.88

68,317.63





29,150.00

2021 2022 Variance

20212020 Variance




For accounting & tax purpose

40,042.89

129,170.63

40,042.47

45,209.72

43,918.44


P/L Monthly Sale Yearly Totals

Revenue 24,000$ 288,000$

Cost of Sale (20,000)$ (240,000)$

Operating Expenses

Net Income 4,000$ 48,000$

P/L Monthly Sale Yearly TotalsRevenue 36,000$ 432,000$ Cost of Sale (30,000)$ (360,000)$ Operating ExpensesNet Income 6,000$ 72,000$


Revenue 36,000$ 432,000$

Cost of Sale (30,000)$ (360,000)$

Operating Expenses -$ -$ Net Income 6,000$ 72,000$


Revenue 48,000$ 576,000$

Cost of Sale (40,000)$ (480,000)$

Operating Expenses -$ -$ Net Income 8,000$ 96,000$

NOTE: Gross Projected Sales is the calculation; Estimate Budget + Future

Budget ( Cars ).

Addendum #2 Page 10

4 Monthly Car Sales @ $6K Each

6 Monthly Car Sales 2021 @ $6K each


Future Project Budgets ( CARS ) 2023


Gross Projected Sales

1,467,277.31

(756,296)$

354,470$

1,207,023.75


291,590$

296,757$

(600,257)$

(560,214)$


223,672$

(400,172)$

804,683$


1,077,853.13 Gross Projected Sales




Revenue 2,500$ 30,000$

Cost of Sale (1,000)$ (12,000)$

Operating Expenses

Net Income 1,500$ 18,000$

P/L Monthly Sale Yearly TotalsRevenue 2,500$ 30,000$ Cost of Sale (1,000)$ (12,000)$ Operating ExpensesNet Income 1,500$ 18,000$


Revenue 4,166$ 49,992$

Cost of Sale (1,666)$ (19,997)$

Operating ExpensesNet Income 2,500$ 29,995$


Revenue 4,166$ 49,992$

Cost of Sale (1,666)$ (19,997)$

Operating ExpensesNet Income 2,500$ 29,995$

NOTE: Gross Projected Sales is the Calculation; Estimate budget + Future

Budget ( Cars ) + Future Budget ( Tires )

Addendum #3 Page 11

1,517,269.31

(776,292.77)

384,465.62

309,590.06

Future Project Budgets ( TIRES ) 2023

Used Tires



Used Tires

Gross Projected Sales 1,107,853.13 (572,214.47)



834,682.50

(412,172.00)

Used Tires


326,752.09

(620,254.16)

1,257,015.75


241,671.63

Used Tires

Cars Budget Summary Tires Budget Summary

Revenue 516,683$ 288,000$ 30,000$ Revenue

COGS (160,172)$ (240,000)$ (12,000)$ COGS

Operations (180,839)$ -$ Operations

Net Income 175,672$ 48,000$ 18,000$ Net Income

Cars Budget Summary Tires Budget SummaryRevenue 645,853$ 432,000$ 30,000$ RevenueCOGS (200,214)$ (360,000)$ (12,000)$ COGSOperations (226,049)$ -$ -$ OperationsNet Income 219,590$ 72,000$ 18,000$ Net Income-$


Revenue 775,024$ 432,000$ 49,992$ Revenue

COGS (240,257)$ (360,000)$ (19,997)$ COGS

Operations (310,010)$ -$ -$ OperationsNet Income 224,757$ 72,000$ 29,995$ Net Income


Revenue 891,277$ 576,000$ 49,992$ Revenue

COGS (276,296)$ (480,000)$ (19,997)$ COGS

Operations (356,511)$ -$ -$ OperationsNet Income 258,470$ 96,000$ 29,995$ Net Income

Car Wash & Oil Change Budget




2022 Summary of Estimated Budget, Cars & Used Tires Project

GRAND TOTAL


GRAND TOTAL

GRAND TOTAL


GRAND TOTAL

1,369,833$ TOTAL

Addendum #4 Page 12

(356,511)$ 384,466$

(620,254)$

(310,010)$ 326,752$

1,517,269$

(776,293)$

1,107,853$ (572,214)$ (226,049)$ 309,590$

1,257,016$


241,672$

(180,839)$

(412,172)$

834,683$

413,346

516,683

645,853

775,024

891,277 $834,683

$1,107,853

$1,257,016

$1,517,269

350,000

400,000

450,000

500,000

550,000

600,000

650,000

700,000

750,000

800,000

850,000

900,000

950,000

1,000,000

1,050,000

1,100,000

1,150,000

1,200,000

1,250,000

1,300,000

1,350,000

1,400,000

1,450,000

1,500,000

1,550,000

1,600,000

2019 2020 2021 2022 2023

Gross Revenue vs Gross Revenue Including Cars & Tires sales

Gross Revenue Gross Revenue with Car & Tires Project Expon. (Gross Revenue) Expon. (Gross Revenue with Car & Tires Project)

Jan - Jun 19

Ordinary Income/ExpenseIncome

40000 ꞏ Income - 1 206,673.09

Total Income 206,673.09

Cost of Goods Sold50100 ꞏ Subcontractor 12,682.0050400 ꞏ Materials & Supplies 34,021.9250750 ꞏ Auto Maintenance Supplies 18,807.01

Total COGS 65,510.93

Gross Profit 141,162.16

Expense61000 ꞏ Auto Expenses 237.0261300 ꞏ Alarm & Security Service Exp 101.0062000 ꞏ Bank Charges 607.2862100 ꞏ Credit Card/Merchant Fees 1,108.8962200 ꞏ Cable and Internet Expense 1,577.9766000 ꞏ Payroll Expenses 4,492.2967150 ꞏ Insurance - Liability 1,184.8867160 ꞏ Insurance - Other 2,794.7867180 ꞏ Interest Expense 726.0068500 ꞏ Legal and Professional Expe... 3,388.7569000 ꞏ Licenses & Permit Expense 46.8570000 ꞏ Maintenance and Repair 1,232.2470500 ꞏ Meals and Entertainment Exp 11.1770850 ꞏ Merchant Fees 1,822.2271000 ꞏ Office Expense 1,545.2873500 ꞏ Postage Expense 1.2174300 ꞏ Rental or Lease Building 35,145.0074800 ꞏ Repairs Expense 33.4876000 ꞏ Telephone Expense 355.6476250 ꞏ Tools 1,559.1076900 ꞏ Uniform 2,423.9477300 ꞏ Salaries & Wages Expense 49,850.0077400 ꞏ Sales Tax Expense 102.3878500 ꞏ Utilities & Waste Expense 8,338.26

Total Expense 118,685.63

Net Ordinary Income 22,476.53

Chelita's, LLC.Profit & Loss

January through June 2019

Page 1

Jan - Jun 19

Other Income/ExpenseOther Income

45500 ꞏ Sales Tax Collection Allowance 180.00

Total Other Income 180.00

Net Other Income 180.00

Net Income 22,656.53


January through June 2019

Page 2

Jun '18 - May ...Ordinary Income/Expense

Income40000 · Income - 1 384,878.65

Total Income 384,878.65

Cost of Goods Sold50100 · Subcontractor 26,536.0350400 · Materials & Supplies 89,148.9650750 · Auto Maintenance Supplies 16,151.07

Total COGS 131,836.06

Gross Profit 253,042.59

Expense60000 · Advertising Expense 634.8460500 · Amortization Expense 12,323.0061000 · Auto Expenses 5,440.9461100 · Auto Gasoline Expense 2,002.2461300 · Alarm & Security Service Exp 101.0062000 · Bank Charges 3,205.2462100 · Credit Card/Merchant Fees 1,637.4662200 · Cable and Internet Expense 4,351.9664000 · Depreciation Expense 7,464.0065000 · Employee Benefit Programs ... 237.8966000 · Payroll Expenses 5,490.9467150 · Insurance - Liability 3,884.6467160 · Insurance - Other 3,393.0167180 · Interest Expense 3,388.0068500 · Legal and Professional Expe... 5,188.7569000 · Licenses & Permit Expense 317.12


June 2018 through May 2019

Page 1

Jun '18 - May ...70000 · Maintenance and Repair 1,620.3270500 · Meals and Entertainment Exp 636.5070850 · Merchant Fees 1,173.0071000 · Office Expense 2,450.0573000 · Parking & Tolls Expense 81.5473500 · Postage Expense 1.2174300 · Rental or Lease Building 93,050.0074500 · Rent or Lease Auto 239.7275500 · Supplies Expense 571.5376000 · Telephone Expense 1,104.8876250 · Tools 2,858.5576900 · Uniform 3,559.2177000 · Officer Compensation -4,500.0077300 · Salaries & Wages Expense 54,125.0077400 · Sales Tax Expense 184.9178500 · Utilities & Waste Expense 18,821.36

Total Expense 235,038.81

Net Ordinary Income 18,003.78

Other Income/ExpenseOther Income

41000 · Other Income 990.0045500 · Sales Tax Collection Allowance 300.00

Total Other Income 1,290.00

Net Other Income 1,290.00

Net Income 19,293.78


June 2018 through May 2019

Page 2

business budget & valuation analysis...automotive lubricants market was valued at $64,716...

Documents