Frequently Asked Questions

Auto businesses of every kind: general repair, collision and body shops, tire and wheel, quick lube, transmission and other specialty shops, towing, salvage yards and parts, and shops sold with their land and buildings. If it services, fixes, tows or parts out vehicles, ask us.

Auto Shops For Sale is run by Beltway Nationwide Business Brokerage, LLC, a business brokerage based in Annapolis, Maryland, working with buyers and sellers nationwide. More about us.

Listings never name the shop or give its exact location. Buyers are screened and sign a confidentiality agreement before they learn which shop it is, and the owner decides when employees and customers are told.

Price and terms come first. An overpriced shop, or one whose owner won't offer reasonable terms, draws few buyers. A realistically priced shop with sensible terms draws several, and competition among buyers pushes the price up.

Next is the quality of your information. Complete, accurate financials, equipment lists and lease details remove doubt; earnings and assets have to be provable. See how we value a shop.

Buyers and lenders will ask how waste oil, fluids, solvents, batteries and tires are stored and disposed of, and whether there are underground tanks, lifts with in-ground cylinders or other history on the property. When real estate is part of the sale, a lender may require an environmental assessment. Having your disposal records and any past reports on hand makes this part of the sale go smoothly.

Yes. Most shops are sold with the lease assigned to the buyer or replaced by a new lease with the landlord. Buyers and lenders want enough time left on the lease, with renewal options, to justify the investment, so check your lease early and talk to us before approaching your landlord.

Consider these protections in case the buyer can't pay:

• Background check: research the buyer's credit, assets, work experience and references.
• Life insurance: require a policy on the buyer naming you as beneficiary.
• Additional collateral: home equity, property or other investments the buyer owns.
• Personal guarantee: the buyer personally guarantees your note.
• Asset restrictions: no selling equipment or major expansions until your note is paid.

The down payment can matter more than the price. A buyer is trying to get as much business as possible for the cash they have, so asking for a large down payment, or all cash, sharply narrows the field and lowers what buyers will pay.

Still, always require a real down payment: a buyer with a serious stake is less likely to walk away if times get hard. Banks typically want 25–30% down for a business purchase loan, and we recommend sellers require 25–35%. Remember your own costs after the sale, too: taxes on the gain, paying off business loans the buyer doesn't assume, and professional fees.

Usually you'll stay for a short transition: introducing the new owner to customers, vendors and your crew, and showing them how the shop runs. If you're financing part of the sale, it's in your interest to help them succeed. A good transition plan can also help the shop sell faster and for more.

When any part of an SBA loan pays for a change of ownership, the lender must determine that:

• the change of ownership is an arm's-length transaction;
• the lender, or a qualified independent individual, determines the value of the business; and
• the loan file documents the valuation, including the supporting analysis.

If the change of ownership comes less than three years after a previous one, the lender must obtain two formal business appraisals.