Buying a Collision & Repair + Towing company, need some advice

searcher profile

February 28, 2025

by a searcher from Howard University in Atlanta, GA, USA

I'm in the process of buying a Collision & Repair and Towing company in my area, I am submitting the LOI soon and need some advice on what to look for during the diligence process and any pitfalls of the industries to look after when I takeover the business.

If anybody has experience in Collision & Repair or Towing, or even both; please contact me at redacted

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commentor profile
Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
^redacted‌ thank you for the tag. I would be happy to have a discussion. We offer a free review of transactions in advance and provide feedback on concerns from a lender perspective. We have done a lot of lending into the auto repair industry, so we have a lot of experience here. You can reach me here or directly at redacted if we can provide any assistance. Good luck!
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Reply by a searcher
from Claremont McKenna College in San Francisco Bay Area, CA, USA
Having purchased a dealership with a large service center, I would look closely at shop efficiency by month (hours billed/hours worked; should be >75%) and hourly rate, tenure of each employee (you want market-rate team with long tenures) and have good incentives for service advisor/manager (unless you are stepping into that, which is a very tough job)
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