How do I sell my auto repair shop?

How do I value my auto repair shop?

5 Ways to Build Value in an Auto Repair Shop Before Selling

  1. 25%-35% of annual sales + inventory.
  2. 5x-2.3x SDE + inventory.
  3. 3x EBIT.
  4. 2-4x EBITDA.

How do you value a auto body business?

The auto repair shop’s assets (land, building, equipment, tools) are adjusted to fair market value, along with any liabilities (bank loans, amounts owed to vendors). This method values the business as assets less liabilities.

How much can you make owning a repair shop?

In general, a larger auto body shop can earn $100,000 per year, and mechanics themselves can make between $30,000 and $50,000 per year. BizStats offers a breakdown of costs vs revenues.

Do auto repair shops make money?

Auto repair shop businesses make money by taking in customers’ vehicles, testing them, replacing the parts that don’t work, and sending the customers on their merry way.

How much is a body shop worth?

Classified under the SIC code 7532 and NAICS 811121, there are over 157,000 such companies throughout the US.

Example: Valuation of an auto body shop using multiples.

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Multiple Multiple value Business value
Average 0.37 $623,100
Median 0.31 $564,500
Average Business Value $705,475

How do I sell my car company?

The Process of Selling Your Automotive Business

  1. Market Responsive Business Evaluation. …
  2. Preparing your Business for Sale. …
  3. Confidentiality. …
  4. Marketing and Advertising. …
  5. Negotiation and Deal Structure. …
  6. Securing and Obtaining Financing. …
  7. Franchisor Relations. …
  8. Due Diligence Facilitation.

What multiples are businesses selling for?

Buyers, guided by appraisers and business valuation experts, use rules of thumb to value businesses based on multiples of business earnings. Bizbuysell says, nationally the average business sells for around 0.6 times its annual revenue.

How do I start my own auto repair business?

6 tips To Grow Your Automotive Service Business

  1. An Automotive Industry-Wide Problem.
  2. 1) The importance of Top Tier Customer Service.
  3. 2) Show your customers some love.
  4. 3) Tech Is taking the industry by storm.
  5. 4) Get Social.
  6. 5) Newsletters & Content Creation.
  7. 6) Word of mouth advertising.

What is the average profit margin for auto repair?

For the automotive repair industry, the average profit margin is between 20-28% for parts and 50-65% for labor. In order to maximize your profit margins, you either need to increase your revenue or decrease your costs.

What is the most profitable automotive business?

The 10 Most Profitable Car Companies in 2020

  • Toyota Motor: $19.1 billion.
  • Volkswagen: $15.54 billion.
  • General Motors: $6.73 billion.
  • BMW: $5.5 billion.
  • Honda Motor: $4.19 billion.
  • Volvo: $3.79 billion.
  • SAIC Motor: $3.71 billion.
  • Peugeot: $3.58 billion.

How can I make my repair shop more profitable?

6 Ways to Increase Auto Repair Shop Profits

  1. Take a Disciplined Approach to Your Finances. …
  2. Schedule Appointments. …
  3. Inspect Every Vehicle. …
  4. Reduce Fees on Card Transactions. …
  5. Invest in Current Customers (and Employees) …
  6. Generate New Customers with Local Coupon Advertising.
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How much do auto body shop owners make a year?

According to Chron.com, the average annual salary for an auto body shop owner is $101,000, although this varies by region.