Value & earnings

Car wash earnings bridge: proposed and supported adjustments

Compare reported, proposed and supported earnings with owner-operated and managed scenarios.

Indiana Car Wash BrokerSources & method
Private by design

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What the columns mean

Reported profit is the selected starting measure. The proposed owner-operator scenario includes the positive adjustments you say were deducted there. The supported scenario includes only adjustments marked supported. The managed scenario then deducts incremental replacement management. Rent is a separate incremental downward adjustment.

The template covers common adjustment categories, not every possible accounting issue. Negative reported profit is valid. If an omitted recurring expense is discovered, incorporate it in the starting normalized records or have an advisor build a fuller schedule; do not disguise it as a positive add-back.

Avoid the capital-spending double count

A $20,000 capital purchase that was not deducted in starting profit produces $0 add-back. A recurring repair should not automatically be accepted as noncontinuing. Keep immediate equipment work and ongoing reserve separate in the acquisition cash-flow tool.

Worked example

Reported profit $100,000 + expensed owner compensation $80,000 + documented personal expenses $10,000 − incremental rent $12,000 = $178,000 owner-operator scenario before replacing owner labor. Deduct a $55,000 replacement manager to reach $123,000 managed earnings. Example values are hypothetical; support status must reflect the actual records.

Next evidence

For each adjustment, save the reference, amount/sign, ledger inclusion, recurrence and support in your private file. Read the add-backs guide and valuation method before using a subtotal in negotiations.