Buy a Shop
Whether you're a technician ready to own or an operator adding a location, we'll help you find the right shop and close the deal.
Start with a shop that's already running
Opening a shop from scratch means finding a building, buying lifts and diagnostic equipment, hiring technicians and then waiting for the phone to ring. An established shop has all of that on the first day, along with a track record you can check before you buy.
Most sellers also stay on to train you and introduce you to customers, and many will finance part of the price. A knowledgeable seller who still has money riding on the shop's success is one of the best advantages a new owner can have.
What to look at before you buy
- Earnings you can verify: tax returns and financial statements that agree with each other.
- Car count and average repair order, and whether they're steady, growing or slipping.
- The technicians: experience, certifications, and whether key people will stay after the sale.
- Equipment: what's included, its age, and what will need replacing soon.
- The building: a lease long enough to protect your investment, or the option to buy the property.
- Where the work comes from: retail customers, fleets, insurers or warranty work, and how much depends on any one source.
- Environmental and licensing: how fluids, waste oil and tires are handled, and which licenses transfer.
Look for a shop you'd be proud to own, that you can afford with the cash you have, and that leaves enough cash flow after the loan payments to live on. The best purchases are shops you can see yourself running better than the current owner.
Questions and answers
I'm a technician. Can I really buy my own shop?
Many shop owners started exactly that way. Knowing the work is a big advantage; the business side (pricing, staffing, marketing, the books) is what you'll need to learn, and a seller who stays on to train you helps a lot. With seller financing and an SBA or bank loan, the cash you need up front is often much less than the price.
Why use a broker to buy a shop?
Many shops change hands without ever being advertised. A broker can show you opportunities you wouldn't find on your own, tell you how a price compares with the market, and handle the details of the purchase, including pointing you to lenders, attorneys and accountants who know business sales.
How are shops priced?
Mostly on what the shop earns for its owner, plus its equipment and, if included, the real estate. See how we value a shop.
Because most sales include some seller financing, the down payment and terms often matter more than the headline price. If you could buy a shop with a modest down payment and it paid you more than you expected, would the full price really matter?
How do I pay for it?
Most purchases combine a down payment from the buyer, a bank or SBA loan, and part of the price financed by the seller. Lenders look at the shop's verified earnings and at your experience, so a background in the trade helps. We can recommend lenders who finance business acquisitions.
What happens when I make an offer?
We help you put the offer in writing. A purchase contract generally covers:
- the price, and how and when it's paid;
- the equipment, inventory and other assets included;
- the training and transition help the seller will give;
- a non-compete: how long, and how far from the shop;
- the lease assignment or real estate terms;
- and, if the seller is financing part of it, the details of the note.
The offer is usually subject to your review of the books and the shop. The seller can accept, reject or counter.
What happens during due diligence?
You check everything that matters: the books and tax returns, the equipment, the lease or property, the licenses, the environmental side, the competition nearby and the local market. Your accountant and attorney should review the financial and legal parts. We work with the seller to get you what you need, and help with financing approval, license transfers and the lease.
Do I need an attorney?
Yes, ideally one who has handled business purchases before. Brokers can't give legal advice, and an experienced attorney makes sure the legal side is done right. Pick one who knows that the deal has to be fair to both sides, and who has time to keep the paperwork moving. We can give you names.
Tell us the shop you're looking for.
We'll match you with shops that fit, including ones that are never advertised.