Automotive businesses for sale

An automotive business is built on three things: the people doing the work, the equipment they use, and the site where customers come. Start with the mechanics and other staff. Who are the key people, how long have they been there, and will they stay after a change of owner? A workshop where the owner handles diagnostics, customer contact and the difficult repairs is more exposed than one where the work is spread across several skilled staff.

Then look at the customers. Regular private customers, fleet and business clients and agreements with leasing companies give more stable revenue than walk-in trade. Ask how customers find the business and whether the customer database is up to date. That database holds personal data such as names, number plates and phone numbers, so check that it has been kept in line with GDPR before it is transferred.

Smaller owner-run automotive businesses are usually priced on profit. Sitavo’s indicative range is 2–3.5 times annual profit (SDE: profit plus the owner’s own salary and one-off items), cross-checked against 0.2–0.6 times revenue. Experienced mechanics who stay, well-maintained equipment, dealer and service agreements and a good location push the price up. A short lease, worn equipment and heavy owner dependence pull it down. Used cars and stock are usually valued separately on top of the price for the business. These are general market ranges, not a valuation — use the price estimate and the market data for the category.

• Revenue split between workshop jobs, parts, car sales, tyres and washing.
• Hourly rate and utilisation for the mechanics.
• Gross margin on parts, tyres and cars sold.
• Rent and remaining lease term relative to revenue.
• Age of equipment and planned replacements.

Most automotive businesses rent their premises. Review the lease for remaining term, notice, rent adjustments and the right to assign it. Workshops and car washes handle oil, chemicals and wastewater, so an environmental approval, an oil separator and a discharge permit may be required. Ask about soil contamination on the site, and agree in the purchase agreement who is liable for conditions dating from before the takeover. Review lifts, diagnostic tools and machinery with age, servicing and inspections, and check whether anything is leased, because leases must either be taken over or settled.

• Chain or brand affiliation, dealer and service agreements, and whether they need manufacturer or chain approval on a change of owner.
• Lease, environmental approvals and any contamination.
• Equipment list with age, inspections and leases.
• Stock, used cars and parts, and how they are counted.
• Agreements with financing partners and leasing companies.
• Staff, qualifications and key people.

Sellers can share contracts and accounts in a data room behind an NDA, so you can review them before making an offer. See also the pre-purchase checklist.

Employees transfer on their existing terms under the Danish transfer of undertakings rules. Agree how customers will be told and whether the seller stays for a period to introduce you. Read more in the handover guide. Messaging sellers and making offers on Sitavo is free, and price and terms are agreed in the deal workflow. Sitavo does not offer financing, and the purchase price is paid directly to the seller — Sitavo never holds the money. See also trading businesses, trade businesses and transport businesses for sale.