Automotive Repair Shops/Service Center Business Valuation Formulas:
Auto Repair Businesses: This is a general
business valuation formula for automotive repair businesses based on
a percentage of annual gross revenues that can be used to help
determine an approximate value and asking price to market an
existing auto repair business for sale.
Automotive
Repair Business Valuation Formula:
Approximately 35 to 40% of annual gross sales + inventory
Broker
Comments:
As a small
business broker in Arizona
for 10 years I have found
automotive service or repair shops can take a little longer to sell
than other typical “Main St” businesses because finding a buyer with
the right qualifications and skills (and adequate funds) to run a
successful operation can sometimes be challenging. I have found that
absentee (or semi-absentee) run auto repair shops with a strong
manager in place are also easier to sell and generally support
higher business valuations and asking prices.
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Broker Tips:Don’t name your business after your
self. Ex: “jerry’s auto repair”. For a number of common sense
reasons I have found it’s much easier to sell a business that’s not
attached to the owner’s personal name
Free
Business Valuation Calculator
- Submit some basic financial info
about your automotive repair business tog get a free instant
valuation based on the owners annual adjusted net cash flow.
Note:
Always contact and consult with a Business Broker, Business
Appraiser, or financial adviser who is familiar with the dynamics of
your local market and economy because conditions for establishing an
asking price for an Auto service business can vary based on a wide
variety of factors.