Auto Repair Shop - Due diligence

by a searcher from Carson-Newman College

1 year ago

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.

2 likes
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5 comments

searcher

Hi Carl, I recently closed on an auto shop in Southern California. I'd be happy to discuss the details and my experience so far.

6 months ago | like reply | 0 likes

professional

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.

6 months ago | like reply | 1 like

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