SAMPLE ARTEFACT. Structure mirrors a typical AXIS Calculation Report. Entity, owners, and figures are fictionalized.
Page numbers in a live report vary with final content.
Motorhomes Don Jose, LLC is a fictional Puerto Rico LLC used only for this SAMPLE. The Company is portrayed as a recreational-vehicle retailer serving the western corridor of Puerto Rico, with more than a decade of operations. No street address, registration number, or real owner identity is used.
Portrayed as owner-operated with a small staff (illustrative 4–6 people). Key-person dependence is noted as a valuation risk factor. Owner name in this SAMPLE is fictional.
Facilities described generically (western PR retail corridor). Related-party occupancy costs are normalized to market in the financial section. Operating risks retained for analytical realism include hurricane exposure, shipping logistics to the island, and cyclical retail demand — without citing real property or lease counterparties.
SAMPLE ARTEFACT
Brief macro and industry context for Puerto Rico retail / specialty vehicle dealers. Supports risk assessment — not marketing narrative.
SAMPLE ARTEFACT
Market approach primary (SDE and revenue multiples). Income / asset approaches considered; weighting and exclusions documented with rationale.
Motorhomes Don Jose, LLC | Puerto Rico LLC | Valuation Date: December 31, 2025 | Standard: Fair Market Value1
AXIS Independent Advisory was retained to provide a calculation of value of 100% of the ownership interests of Motorhomes Don Jose, LLC ("the Company"), a recreational vehicle dealership operating in the western Puerto Rico corridor. The Company is fictional and the figures throughout are illustrative. This engagement was performed under NACVA Professional Standards and AICPA SSVS No. 1 as a Calculation of Value for internal succession planning purposes.
The Analyst considered the market, income, and asset-based approaches, and applied the market approach using comparable transaction data from market transaction databases. The basis for the approaches applied and not applied is set out in the Indicated Value section. The SDE Multiple Method received 75% weighting based on 8 selected comparable transactions (observed median 2.33x SDE). The Revenue Multiple Method received 25% weighting as a corroborating indicator.2 Historical financial data for fiscal years 2021 through 2025 was analyzed, with normalizing adjustments applied to reported earnings to reflect the economic benefit available to a single owner-operator.
The sections that follow provide the detailed analyses, data, and rationale supporting this indicated value.
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| Line Item | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $2,840,000 | $3,120,000 | $2,910,000 | $2,760,000 | $2,980,000 |
| Cost of Goods Sold | $2,272,000 | $2,496,000 | $2,357,000 | $2,263,000 | $2,444,000 |
| Gross Profit | $568,000 | $624,000 | $553,000 | $497,000 | $536,000 |
| Gross Margin | 20.0% | 20.0% | 19.0% | 18.0% | 18.0% |
| Operating Expenses | $363,000 | $406,000 | $383,000 | $367,500 | $384,000 |
| Operating Income | $277,000 | $298,000 | $206,000 | $145,500 | $165,000 |
| Interest Expense, net | $20,000 | $23,000 | $41,000 | $35,000 | $28,000 |
| Net Income | $257,000 | $301,000 | $165,000 | $110,500 | $137,000 |
| Adjustment | Amount | Rationale |
|---|---|---|
| Reported Net Income | $137,000 | Per Form 1065, FY2025 |
| + Owner Compensation | $115,000 | Guaranteed payments and distributions to the sole owner-operator |
| + Depreciation & Amortization | $22,000 | Non-cash. Per Form 4562.3 |
| + Interest Expense | $31,000 | Floor-plan and term debt. Buyer decision. |
| + Personal/Discretionary | $8,000 | Personal vehicle, cell phone, travel per GL detail |
| + Non-Recurring Items | $5,000 | FY2025: one-time storm-related lot repair5 |
| + Rent Adjustment | $6,000 | Related-party lease below market ($3,500/mo vs. $4,000/mo est.)4 |
| Normalized SDE | $298,000 |
The normalized SDE of $298,000 for fiscal year 2025 was selected as the representative benefit stream, reflecting the Company's current operating performance rather than the elevated 2022 result, which reflected post-pandemic demand that has since normalized.6
Consistent with NACVA Professional Standards, all three generally accepted approaches to value were considered. The approaches applied, and the basis for excluding those not applied, are set out below.
| Approach | Applied | Basis |
|---|---|---|
| Market Approach | Yes — primary | Adequate transaction data available for comparable owner-operated dealerships; directly observable pricing evidence. |
| Income Approach | No | Management did not prepare forecasts, and historical earnings do not support a reliable projection independent of the current owner-operator. A capitalized-earnings indication would restate the same benefit stream already captured in the SDE multiple.7 |
| Asset-Based Approach | No | The Company is a going concern whose value derives primarily from earnings capacity and intangible assets, including customer relationships, assembled workforce, and goodwill. An asset-based valuation would not capture those values and would understate the enterprise value. |
| Method | Indicated Value | Weight | Weighted Value |
|---|---|---|---|
| SDE Multiple Method (2.20x) | $712,800 | 75% | $534,600 |
| Revenue Multiple Method (0.28x) | $854,000 | 25% | $213,500 |
| Weighted Indication of Value | 100% | $748,100 |
The SDE Multiple Method received 75% weight based on a set of 8 transactions in NAICS 441210 (Recreational Vehicle Dealers) meeting the screening criteria described in the Comparable Transactions exhibit. The selected multiple of 2.20x falls below the observed median of 2.33x, reflecting the Company's dependence on a single owner-operator, limited management depth, revenue below the 2022 peak, and Puerto Rico-specific risk factors including island logistics and hurricane exposure to outdoor inventory.8 The Revenue Multiple Method received 25% weight as a corroborating indicator; it is weighted lower because revenue multiples do not capture differences in margin structure between the subject and the comparable set.
No discount for lack of control (DLOC) was applied because the subject interest is a 100% controlling interest. No separate discount for lack of marketability (DLOM) was applied because the selected multiples derive from completed sales of whole, privately held businesses, in which limited marketability is already reflected in the observed transaction pricing. Applying a further DLOM would double-count that factor.9
(Rounded to reflect the imprecision inherent in the valuation process.) This is a Calculation of Value performed under NACVA Professional Standards using approaches and procedures agreed in advance with the client. It is not a Conclusion of Value, and a Conclusion of Value may have differed had one been performed.10
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