Car repair shops for sale

A repair shop sells its mechanics’ time and know-how. Ask how many mechanics there are, how long they have been employed and what training they have, for example in electric and hybrid vehicles and air conditioning. If the owner handles the difficult diagnostics and customer contact, you need a plan for who takes that over. Ask for the hourly rate, utilisation and the split between servicing, repairs and roadworthiness tests.

Lifts, diagnostic tools, tyre machines and fault-finding software are expensive, and diagnostic tools often need ongoing licences. Ask for an equipment list with age and inspections, and check whether anything is leased. If the workshop belongs to a chain or is an authorised service workshop for a brand, review the agreement: what does membership cost, what equipment and training is required, and does a change of owner need the chain’s or manufacturer’s approval?

Workshops handle waste oil, chemicals and other waste and may be subject to environmental requirements. Ask for permits and disposal agreements, and ask about contamination on the site.

Look at the customer base as well. Regular private customers with service records, fleet customers and agreements with leasing companies keep the workshop evenly booked. Ask how much of revenue the largest customers account for and whether the agreements are in writing. The customer database with number plates and contact details must be kept in line with GDPR.

Sitavo’s indicative range for the category is 2–3.5 times annual profit (SDE), cross-checked against 0.2–0.6 times revenue. Several skilled mechanics, modern equipment, regular fleet customers and a long lease push the price up. The parts stock is usually valued separately.

• Mechanics, training and key people.
• Equipment list, licences and leasing.
• Chain or service agreement and change-of-owner terms.
• Lease and environmental conditions.
• Customer database and GDPR.

Read the general advice on buying automotive businesses, and use the price estimate.