Sample report
Meridian Auto Group LLC
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Prepared By
Sample Advisor
Prepared For
Meridian Auto Group LLC
Business
VALUATION
COMPREHENSIVE REPORT
Private & Confidential
This document contains proprietary information regarding Meridian Auto Group LLC. Access is restricted to authorized parties for the purpose of strategic assessment.
Market Sector
Automotive Services & Fleet Management
Valuation Date
March 1, 2026
Powered By
ALTOS IQ Apex Engine
Opinion of Value
We have prepared an opinion of value for Meridian Auto Group LLC, set out below.
This opinion was prepared for the purpose of sale preparation. It is expressed on a fair market value basis, under a going concern premise, as of March 1, 2026.
Opinion of value
$4,396,024
within a range of $3,501,571 to $5,290,475
Our analysis considered the asset, income and market approaches to value. The approaches applied, and the reasons the others were set aside, are set out in the methodology section of this report. This report is intended for the use of the owners of Meridian Auto Group LLC and their professional advisors.
This opinion is subject to the assumptions and limiting conditions set out in this report, and is valid only as of the date stated above.
Sample Advisor
Sterling & Bay Advisors
Basis of Valuation
Purpose
Sale preparationTo support pricing and negotiation in connection with an active or imminent sale of the business.
Standard of value
Fair market valueThe price at which the business would change hands between a hypothetical willing buyer and a willing seller, neither being under compulsion to act and both having reasonable knowledge of the relevant facts. It reflects no particular buyer and includes no buyer-specific synergies.
Premise of value
Going concernThe business is assumed to continue operating, with its assets, workforce and customer relationships in place and generating earnings.
Interest valued
100% of the business, as an asset saleThe buyer acquires the operating assets; the seller retains cash and interest-bearing debt.
Level of value
Controlling, marketableNo discount for lack of control or marketability was applied.
Dates
Valuation date March 1, 2026Report prepared March 1, 2026. The conclusion speaks as of the valuation date only.
Sources of information
Meridian 2025 Form 1065.pdf (recorded 2026-02-26)Also relied on: Meridian FY2023-2024 compiled statements.pdf (recorded 2026-02-26); Meridian 2025 compiled statements.pdf (recorded 2026-02-26); Meridian Jan-Feb 2026 management accounts.pdf (recorded 2026-02-26).
Scope
Calculated from information providedCalculated from information provided by management and third-party records, which Sterling & Bay Advisors has not independently audited or verified. Not a certified appraisal.
Executive Summary
Valuation Result: $4,396,024
This report provides a valuation of Meridian Auto Group LLC as of March 1, 2026. The analysis concluded a Fair Market Value of $4,396,024, against revenue for the twelve months to February 28, 2026 of $4,999,320 at a 20.3% EBITDA margin.
Revenue compounded at 10.1% annually across 2023–2025, a steady trajectory consistent with a stable operating base.
AltosIQ Score
76| Earnings margin | 25/25 |
| Growth trend | 19/25 |
| Customer concentration | 8/20 |
| Revenue scale | 15/15 |
| Quality of financials | 9/15 |
This business presents reasonably well, with specific factors below worth addressing before a sale. All five factors were assessed.
Valuation Summary
Key Value Drivers
Margin Strength
An EBITDA margin of 20.3% sits above the level most acquirers treat as the threshold for a scalable operation.
Demonstrated Growth
10.1% compound annual revenue growth across 2023–2025, evidenced by the financials supplied.
Owner Earnings
Discretionary earnings of $1,345,858 represent 26.9% of revenue, the figure a main-street buyer underwrites against.
Asset Backing
$1,840,000 in recorded assets provides a floor beneath the earnings-based conclusion.
Historical Performance
Categorized Financial Breakout (2023–2025)
Revenue compounded at 10.1% annually across 2023–2025, a steady trajectory consistent with a stable operating base.
| Categorized Financial Breakout | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $4,120,000 | $4,540,000 | $4,994,320 |
| Cost of goods sold | $2,390,000 | $2,610,000 | $2,846,762 |
| Gross Profit | $1,730,000 | $1,930,000 | $2,147,558 |
| Operating expenses | $1,060,000 | $1,120,000 | $1,133,200 |
| EBITDA | $670,000 | $810,000 | $1,014,358 |
| Owner's compensation | $260,000 | $260,000 | $260,000 |
| SDE | $930,000 | $1,070,000 | $1,274,358 |
| Capital expenditure | — | — | $182,000 |
Financial Narrative
Revenue converts to EBITDA at 20.3%, from a gross margin of 43.0%.
Current Year to Date
The earnings base is the twelve months to February 28, 2026: fiscal 2025, less the two months to February 28, 2025, plus the two months to February 28, 2026. Add-backs are those recorded for fiscal 2025.
Year-to-Date Results
| Period | The two months to February 28, 2025 | The two months to February 28, 2026 | Twelve months to February 28, 2026 | Change |
|---|---|---|---|---|
| Revenue | $780,000 | $785,000 | $4,999,320 | +0.6% |
| Gross profit | $335,000 | $339,000 | $2,151,558 | +1.2% |
| EBITDA | $150,000 | $151,000 | $1,015,358 | +0.7% |
| SDE | $193,334 | $194,334 | $1,275,358 | +0.5% |
Part-year results, from Meridian Jan-Feb 2026 management accounts.pdf, against the same months of the year before.
Meridian Auto Group LLC
Automotive Services & Fleet Management
Meridian Auto Group operates three fleet-service centres across the Tampa metro, serving municipal and commercial fleet contracts alongside retail repair work. Roughly 60% of revenue is contracted fleet maintenance on multi-year agreements, with the balance from walk-in retail service. The business employs 34 people including 22 certified technicians, and is managed day to day by a general manager who is not the owner.
Revenue compounded at 10.1% annually across 2023–2025, a steady trajectory consistent with a stable operating base.
Historical Revenue Trend (2023–2025)
Growth Insight
Revenue across 2023–2025, as reported in the financials supplied.
Profitability & Assets
Revenue converts to EBITDA at 20.3%, from a gross margin of 43.0%. The build-up below traces revenue through direct and operating costs to the earnings the valuation is based on.
Profitability Progression (2023 vs 2025)
Scale Transformation
Revenue compounded at 10.1% annually across 2023–2025, a steady trajectory consistent with a stable operating base.
EBITDA Build-Up (Waterfall)
Flow Transparency
This cascade shows 20.3% of revenue retained as EBITDA after direct and operating costs.
Balance Sheet Composition
Balance Sheet Evolution (2023–2025)
| Category | 2023 | December 31, 2025 |
|---|---|---|
| Total assets | 0k | 1,840k |
| Total liabilities | 0k | 610k |
Methodology Overview
At Sterling & Bay Advisors, we believe that a valuation is only as good as the data and methodology behind it. Unlike generic calculators, the APEX Protocol mandates a deep-dive into verified financial documents, market benchmarks, and strategic analysis. For the Meridian Auto Group LLC engagement, we utilized a multi-pillar approach to ensure a defensible and realistic market value.
Market Data Applied
Auto Repair and Service Shops
SDE multiple 3.26x, from BizBuySell's closed sales of Auto Repair and Service Shops, 2021–2025 (1,286 sales). At $1,345,858 of SDE it is larger than three quarters of them (upper-quartile SDE $299,531), so the upper-quartile multiple applies.
EBITDA multiple 4.0x: IBBA / M&A Source Market Pulse Q2 2026, all industries, the $2M-$5M purchase-price band this EBITDA prices into. No free source publishes EBITDA multiples by sector.
Regional transaction context
Across 312 SBA-financed acquisitions of automotive repair and maintenance in FL (FY2020 through 2026-06-30), the median loan was $485,000, against $450,000 across 2,847 nationally, 8% above the national figure. A loan is not a purchase price — it is typically 75-90% of one — and this comparison is market context only. It does not enter the valuation, which is driven by this business's own earnings and its sector multiple.
U.S. Small Business Administration, 7(a) FOIA loan data
Approaches Considered
Asset approach - liquidation value
Not appliedRejected: the business is not distressed. EBITDA of $1,180,858 is above the distress threshold, so a going-concern basis applies.
Asset approach - adjusted net assets
Not appliedRejected: recorded assets of $1,840,000 are 0.4x revenue, below the 1x threshold. Value is driven by the earnings stream, not the balance sheet.
Single-basis earnings multiple (SDE or EBITDA alone)
Not appliedRejected: revenue of $4,999,320 sits between $2,000,000 and $5,000,000, where main-street and lower-middle-market buyers compete and neither basis alone reflects the buyer pool.
Market approach - weighted SDE and EBITDA
AppliedApplied: both earnings bases are computed and weighted, reflecting that this business will be marketed to both buyer types.
Sensitivity Analysis
How the value moves when one assumption changes. Each line is hypothetical; the concluded value of the business is $4,396,024 and does not change.
| If this changes | Value | Change |
|---|---|---|
| Revenue 10% lower, at the same gross margin | $3,642,343 | −17.1% |
| Revenue 10% higher, at the same gross marginAt these figures the business is valued by the Adjusted EBITDA Multiple, not the method of the conclusion. | $7,813,489 | +77.7% |
| None of the add-backs accepted | $3,965,716 | −9.8% |
| The largest fleet contract is lost (revenue 12% lower) | $3,491,607 | −20.6% |
Every figure is from the same valuation engine and market data as the concluded value.
Normalization Schedule
| Adjustment | Basis | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Reported EBITDA | $670,000 | $810,000 | $1,014,358 | |
| Owner salary above marketOwner compensation | Owner draws $260,000 against a market rate of $165,000 for a non-working owner in this role. | $85,000 | $90,000 | $95,000 |
| Personal vehicle and travelPersonal expenses | Two personal vehicles and associated travel run through the business, verified against the general ledger. | $31,000 | $33,000 | $34,500 |
| Hurricane repair costsOne-time items | Storm damage to the Brandon location in Q3 2025, non-recurring and supported by the insurance claim. | — | — | $78,000 |
| Below-market rent from owner entityRelated-party rent | Premises are leased from an owner-affiliated entity at $42,000 below market. A buyer would pay market rent, so this reduces normalized earnings. | ($42,000) | ($42,000) | ($42,000) |
| Normalized EBITDA | $744,000 | $891,000 | $1,179,858 | |
The concluded value uses the twelve months to February 28, 2026: reported EBITDA of $1,015,358, adjustments of $165,500 (fiscal 2025's), and normalized EBITDA of $1,180,858. Earlier years show whether each adjustment recurs.
Risk & Value Adjustments
| Factor | Basis | Effect |
|---|---|---|
| Indicated value before company-specific adjustment | $4,555,465 | |
| Customer concentration | Top-customer concentration of 26% is above the 20% threshold at which buyers begin pricing in the risk of losing that account. | -1.5% |
| Quality of financials | Financials are accountant-compiled. A buyer discounts earnings they cannot independently verify, and this is the cheapest risk factor on this list for the seller to improve. | -2.0% |
| Not assessed: Key-person dependency, Intellectual property. No adjustment has been made for these, which is not the same as finding no risk. | — | |
| Concluded value | $4,396,024 | |
Data Reliability Audit (APEX Protocol)
| Document Type | Source Type | Reliability Tier | Verification Status |
|---|---|---|---|
| No source documents have been recorded against this valuation. Figures are as supplied by management and have not been independently verified. | |||
Legal Disclaimers & Compliance Notice
Reliability Tier Legend
The Verification Standard
Market Data Integrity
Document Check
The documents supplied were compared with each other before the figures were relied on: each tax return against the financial statement for the same year, and any question the documents raised was put to the preparer.
Tax returns against financial statements
| Year | Return income | Statement income | Difference | Accounted for by | Not accounted for |
|---|---|---|---|---|---|
| 2025 | $692,358 | $1,014,358 | $322,000 | Depreciation on the return $62,000; Owners' pay on the return $260,000 | $0 |
Statement income is from the financial statements supplied for the same year. Differences are explained below where an explanation was given.
Questions raised by the documents
Repairs and maintenance rose from 1.4% of revenue (2024) to 3.0% (2025), $149,800. Was part of it one-time?
Answer: Yes. $78,000 was storm damage to the Brandon location in Q3 2025, covered by an insurance claim, and is added back as a one-time item.
Valuation Conclusion
Reconciliation of Value Indications
The two earnings bases differ by 8%. The conclusion weights them evenly, reflecting a business that will be marketed to both main-street and lower-middle-market buyers.
Analyst Note on Risk
The company-specific risks, and the effect each has on value, are itemised under Risk & Value Adjustments. Customer concentration and owner dependence are the two that most often move a main-street multiple.
Certification
The preparer of this report certifies that, to the best of their knowledge and belief:
- 01The statements of fact in this report are true and correct.
- 02The analyses, opinions and conclusions are limited only by the assumptions and limiting conditions stated in this report, and are the preparer’s own analysis. The preparer’s interest is disclosed below so the reader can weigh this opinion accordingly.
- 03The economic and industry data included in this report were obtained from sources believed to be reliable. The preparer has not independently verified that data and expresses no opinion as to its accuracy.
- 04The preparer’s interest in the business and how the preparer is compensated for this report are disclosed below.
Disclosure of interest
The preparer expects to be compensated by a commission or success fee if the business is sold, and is acting for the seller. This interest is disclosed so the reader can weigh this opinion accordingly.
Sample Advisor
Sterling & Bay Advisors
Effective date
March 1, 2026
Legal Disclosures
Scope of Services & Statutory Exclusions
This valuation is provided by Sterling & Bay Advisors, using valuation technology licensed from AltosIQ for INFORMATIONAL and STRATEGIC PLANNING purposes only. It is NOT intended for, and MUST NOT be used for:
• Tax or estate planning filings (IRS Form 706, 709, or similar)
• Litigation, legal proceedings, or expert testimony
• Regulatory compliance or financial reporting (ASC 820, etc.)
• Formal SBA-required appraisals
• Securities filings or regulatory submissions
Securities Law Notice
Sterling & Bay Advisors is NOT a registered broker-dealer or investment advisor. This report does not constitute an offer to sell or a solicitation to buy securities. Any capital raise strategy discussed is for strategic advisory purposes only. You MUST consult a qualified securities attorney before offering or selling any securities.
Professional Referral Mandate
This analysis is NOT a certified appraisal. Certain purposes do require one — IRS filings, litigation, and formal SBA-required appraisals among them, set out in full in the terms of service. Engage an appropriate professional where your purpose calls for it. Sterling & Bay Advisors assumes no liability for decisions made without professional counsel.
Projections & Forward-Looking Statements
Any projections, forecasts, or forward-looking statements in this report are based on assumptions that may not materialize. Past performance does not guarantee future results. All investments involve risk, including loss of principal. The valuation is based on data provided by management and third-party records; Sterling & Bay Advisors has not performed an independent audit of the source documentation.
Factors Considered
IRS Revenue Ruling 59-60
Revenue Ruling 59-60 sets out the factors the IRS, courts and appraisers expect a valuation of a closely held business to consider. This valuation's finding on each, and where the report treats it, follow.
| Factor | Finding | See |
|---|---|---|
| 1. Nature and history of the business | Meridian Auto Group operates three fleet-service centres across the Tampa metro, serving municipal and commercial fleet contracts alongside retail repair work. | Business Deep Dive |
| 2. Economic and industry outlook | At the valuation date: 10-year Treasury 4.0%, real GDP growth 1.4% (annualized), inflation 2.4% year on year, unemployment 4.3% (Federal Reserve Economic Data, retrieved 2026-03-01). Market health for the business is assessed as sound. | Executive Summary |
| 3. Book value and financial condition | Total assets $1,840,000 against liabilities of $610,000, for net assets of $1,230,000. | Financial Performance |
| 4. Earning capacity | Revenue rose 21% from $4,120,000 in 2023 to $4,994,320 in 2025. EBITDA after the normalization adjustments in this report was $1,180,858 in the twelve months to February 28, 2026. | Historical Financials |
| Factor | Finding | See |
|---|---|---|
| 5. Dividend-paying capacity | On the earnings of the twelve months to February 28, 2026, after the owner's compensation as normalized and 2025's $182,000 of capital expenditure, $998,858 was available for distribution, before debt service and taxes. | Historical Financials |
| 6. Goodwill and intangible value | The concluded value exceeds net assets by $3,166,024, 72% of value, which is attributable to goodwill and other intangibles. | Valuation Conclusion |
| 7. Prior sales of the interest and size of the block | No prior sale of an interest in the business was reported. | — |
| 8. Market price of comparable public companies | Not relied on. Public companies differ too greatly in size, access to capital and liquidity to be comparable; the market approach uses multiples from sales of private businesses instead. | Methodology |
Source of Figures
Each figure this valuation rests on, and where it came from. Where a figure was read from a document, the page and the line it is printed on are quoted so it can be checked against the original.
| Figure | Year | Amount | Source |
|---|---|---|---|
| Revenue | 2025 | $4,994,320 | Meridian 2025 Form 1065.pdf, page 1“1a Gross receipts or sales . . . . . . 4,994,320” |
| Cost of goods sold | 2025 | $2,846,762 | Meridian 2025 Form 1065.pdf, page 1“2 Cost of goods sold (attach Form 1125-A) . . . 2,846,762” |
| Operating expenses | 2025 | $1,133,200 | Read from Meridian 2025 Form 1065.pdf; not located on a specific page. |
| Officer compensation | 2025 | $260,000 | Meridian 2025 Form 1065.pdf, page 1“10 Guaranteed payments to partners . . . 260,000” |
| Capital expenditure | 2025 | $182,000 | Entered by the preparing firm. |
| EBITDA | 2025 | $1,014,358 | Calculated from the figures above. |
| Revenue | 2024 | $4,540,000 | Meridian FY2023-2024 compiled statements.pdf, page 3“Total revenue 4,540,000 4,120,000” |
| Cost of goods sold | 2024 | $2,610,000 | Meridian FY2023-2024 compiled statements.pdf, page 3“Cost of revenue 2,610,000 2,390,000” |
| Revenue | 2023 | $4,120,000 | Meridian FY2023-2024 compiled statements.pdf, page 3“Total revenue 4,540,000 4,120,000” |
| Total assets | — | $1,840,000 | Meridian 2025 Form 1065.pdf, page 4“14 Total assets . . . 1,840,000” |
| Total liabilities | — | $610,000 | Meridian 2025 Form 1065.pdf, page 4“Total liabilities . . . 610,000” |