Auto Repair Shop - Due diligence

January 30, 2023

by a searcher from Carson-Newman College in Temecula, CA, USA

Anyone have benchmarks for an autobody repair shop. Looking at one with clean financials but trying to gauge upside for me. Currently does around 800k in revenue/ 200k in profit with 7 vehicle bays. handfull of employees..absentee owner...been in business for over 30 years...wants to reture.

Wondering if anyone here has bought these types of businesses. Thank you. Anything else im not asking that I should be?

Im a newbie and looking at buying my first one. Thanks again.

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Reply by a professional
in Boca Raton, FL, USA

What is the pay structure for the technicians - straight salary part commission? One similar deal I was involved with, it was obvious, as others pointed out here, regarding the techs, but I recommended a different approach. We put a profit sharing/phantom equity program into plan with an opportunity to vest into actual equity. Worked magnificently - all key people remained, and it was not hard at all to attract techs thereafter. Even at $200k profit, you don't have to allocate a lot, the amount will still be meaningful plus a sense of ownership with a potential payoff down the road has enormous perceived value and it keeps people on board.

Reply by a professional
from University of Illinois at Chicago in Deerfield, IL, USA

Thanks Carl. I'm currently and for the past several years have been working with a client who is rolling up shops in this industry. Critical elements include service pricing, tech utilization, and compensation method (flat rate or hourly). I'm happy to share some ideas. My email is redacted

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