Auto shop acquisition

searcher profile

March 14, 2023

by a searcher from Brigham Young University in Salt Lake City, UT, USA

Anyone successfully acquired, or are otherwise familiar with the economics of, an auto mechanic shop? I love this space but have my reservations about acquiring a business in it. Any guidance or insight is much appreciated. Thank you!

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commentor profile
Reply by an intermediary
from University of Pennsylvania in Durham, NC, USA
^redacted‌ You might want to contact Dave Roberts at Focus Advisors, an M&A firm specializing in collision repair shops (https://focusadvisors.com/). Matt DiFrancesco at High Lift Financial is an advisor who provides transition/exit planning services to owners of collision repair businesses (https://highliftfinancial.com/).
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Reply by an investor
from Vanderbilt University in Atlanta, GA, USA
DRP's (direct repair programs) with the insurance carriers are key. They keep the volume coming in. Margins in this industry are great if the shops are efficiently run. Lot of PE portcos chasing the smaller companies with just one or two shops so competition is tough. A former client did a roll up in this space and we helped them acquire over 100 shops.
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