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Auto Repair Shop
 
Business Valuation

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How much is an Auto Repair Shop worth?

We provide everything you need to understand your business' value.

How do you value an Auto Repair Shop?

Considerations

Valuing an auto repair shop business requires a careful analysis of both its tangible and intangible assets, financial performance, and market conditions. The assessment starts with an evaluation of the physical assets, including the repair equipment, tools, inventory, and the property where the shop is located. The condition and age of the equipment, as well as the shop's facilities, are essential considerations. Additionally, the shop's location plays a significant role in determining its value, with proximity to busy roads and access to a broad customer base being advantageous.

The income approach is a crucial aspect of valuing an auto repair shop business. This method involves assessing the shop's financial performance, including revenue, profit margins, and cash flow. Projections for future income and growth potential are also taken into account. Market dynamics, such as the local demand for auto repair services and competition in the area, significantly influence the valuation. Moreover, intangible factors like the shop's reputation, customer base, and the expertise of the mechanics can impact its overall value. Valuing an auto repair shop business requires a blend of quantitative and qualitative considerations, and it often necessitates the expertise of professionals who understand the automotive service industry and the intricacies of business valuation.

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Valuation Approaches

Valuating an auto repair shop business involves a combination of key approaches, taking into account both the tangible and intangible aspects of the business. Here are the primary valuation approaches for an auto repair shop:

Asset-Based Approach:

  • Market Value of Assets: This approach focuses on assessing the market value of the physical assets, including the repair equipment, tools, inventory, and the property where the shop is located. The condition, age, and functionality of the equipment, as well as the property's location, all influence the asset valuation.

Income Approach:

  • Discounted Cash Flow (DCF) Analysis: DCF analysis is a critical approach for valuing an auto repair shop business. It estimates the present value of expected future cash flows generated by the business. Cash flows are derived from revenue, expenses, and potential growth. Projections for future income, expenses, and the discount rate are essential components in this approach. Market conditions, local demand for auto repair services, and the shop's competitive positioning also play a crucial role in the income approach.

Market Approach:

  • Comparable Sales Analysis: This approach involves comparing the auto repair shop to similar businesses in the market that have been sold or valued recently. Key financial metrics, such as price-to-earnings (P/E) ratios, price-to-revenue multiples, or price-to-EBITDA ratios, are used to derive a valuation based on market transactions. It is particularly useful when there are recent comparable sales of auto repair shops in the region.

Intangible Asset Assessment:

  • Reputation and Customer Base: The value of an auto repair shop business also depends on intangible factors like its reputation, customer base, and the expertise of its mechanics. A strong and loyal customer following, as well as a good reputation for quality service, can significantly enhance the shop's value.

Valuation of an auto repair shop business typically requires a combination of these approaches to arrive at a comprehensive estimate. Factors such as the location of the shop, competition in the area, and the potential for future growth or expansion can significantly impact the valuation. Engaging with professionals experienced in the automotive service industry and business valuation is advisable to ensure an accurate and thorough assessment of the business's worth.

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Comprehensive Assessment

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Our valuation methods are transparent and tailored to your business, giving you a clear understanding of how we arrive at the determined value.

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Business Valuation Experts

Get an expert Auto Repair Shop Appraisal

Shelia Darby, MBA, CVA,
MAFF, ECA

Managing Director, BizWorth

Shelia Darby is the Managing Director of BizWorth, where she leads the valuation department and specializes in business valuation and litigation support. With a career spanning over 25 years, she has deep expertise in valuation engagements, including complex litigation cases. She holds a BBA in Finance from Baylor University and an MBA from Rice University’s Jones Graduate School of Business. A CVA, MAFF, and ECA, Shelia is a member of NACVA and the Institute of Equipment Valuation and previously served on NACVA’s Ethics Oversight Board.

Jon Donnel, Managing Director of Advisory at BizWorth

Jon Donnel

Managing Director, Valuation Advisory

Leads the Valuation Advisory Practice focused on complex valuations, loss profit calculations, partner buy-outs and disputes. Jon has held senior-level director positions for Fortune 50 companies and investment banks. He is a Certified Valuation Analyst (CVA) and holds a bachelor’s degree in economics and an MBA from Rice University.

Robert Brand

Director, Business Valuation

Leads BizWorth’s informational and certified business valuation practice. Robert is an officer of NACVA's Houston State Chapter and serves as the treasurer of Houston's Texas Association of Business Brokers. He is a Certified Valuation Analyst (CVA). Robert is a former Combat Engineer serving in Iraq for the U.S. Army and holds a bachelor's degree in finance from University of Houston.

Renee Schreier

Director of Operations

Manages BizWorth's operations and strategic planning initiatives, report production and customer applications. Renee serves as the secretary of Houston's Texas Association of Business Brokers and was a former operations administrator with Accenture. She holds a bachelor’s degree from Texas Lutheran University.

Joseph (Joey) Wilson

Senior Market Analyst

Leads BizWorth's industry and market research initiatives. Joey was a former production analyst with Scotiabank. He holds a BBA and Master of Finance degrees from the University of Oklahoma.

Dan Darby

Director of Pitch Books & CIMs

Leads Pitch Book and CIM report production. Former management consultant with several Big 5 and Fortune 50 companies. Holds a bachelor’s degree in Business Administration from Baylor University and a Master of Science in Organizational Leadership from Northwestern University.

Shelia Darby, MBA, CVA, MAFF, ECA
Managing Director
Shelia Darby is the Managing Director of BizWorth, where she leads the valuation department and specializes in business valuation and litigation support. With a career spanning over 25 years, she has deep expertise in valuation engagements, including complex litigation cases. She holds a BBA in Finance from Baylor University and an MBA from Rice University’s Jones Graduate School of Business. A CVA, MAFF, and ECA, Shelia is a member of NACVA and the Institute of Equipment Valuation and previously served on NACVA’s Ethics Oversight Board.
Joseph Wilson, CVA, ECA
Business Valuation Manager
Joseph is a Business Valuation Manager at BizWorth, where he leads the firm’s SBA Valuation Team and oversees engagements across a broad range of industries. He holds a B.B.A. in Energy Management (2017) and an M.S. in Finance (2021) from the University of Oklahoma. Joseph serves as Treasurer of the TABB Houston Chapter and holds certifications as a Certified Valuation Analyst (CVA) and Equipment Certified Appraiser (ECA).
Shelia Darby, MBA, CVA, MAFF, ECA
Managing Director

Shelia Darby is the Managing Director of BizWorth, where she leads the valuation department and specializes in business valuation and litigation support. With a career spanning over 25 years, she has deep expertise in valuation engagements, including complex litigation cases. She holds a BBA in Finance from Baylor University and an MBA from Rice University’s Jones Graduate School of Business. A CVA, MAFF, and ECA, Shelia is a member of NACVA and the Institute of Equipment Valuation and previously served on NACVA’s Ethics Oversight Board.

Joseph Wilson, CVA, ECA
Business Valuation Manager

Joseph is a Business Valuation Manager at BizWorth, where he leads the firm’s SBA Valuation Team and oversees engagements across a broad range of industries. He holds a B.B.A. in Energy Management (2017) and an M.S. in Finance (2021) from the University of Oklahoma. Joseph serves as Treasurer of the TABB Houston Chapter and holds certifications as a Certified Valuation Analyst (CVA) and Equipment Certified Appraiser (ECA).

Jack Nielsen, CVA
Certified Business Appraiser

Jack is a Certified Business Appraiser, where he plays a key role in delivering Certified and Informational valuations. A graduate of Texas A&M University with a B.S. in Economics, Jack is a credentialed CVA through the National Association of Certified Valuators and Analysts. In addition to valuation work, he leads the creation of Confidential Information Memorandums and Quick Pitches.

Victoria Duron, CPA
Business Valuation Manager

Victoria is a Business Valuation Manager at BizWorth, focusing on valuation production and compliance support. She holds a Master in Professional Accounting and a BBA from The University of Texas at Austin. Victoria is a licensed CPA in Texas and a member of the American Institute of Certified Public Accountants and the Texas Society of CPAs, Houston Chapter. She is currently pursuing her CVA designation.

Sydney Gray
Business Appraiser

Sydney Gray is a Financial Analyst at BizWorth, contributing to the valuation production team. She holds a Bachelor of Science in Business Administration from Liberty University and is pursuing a Master of Business Administration with a concentration in Finance. Sydney is currently pursuing the Certified Valuation Analyst (CVA) designation.

Dan Darby, MSc
Managing Director

Dan is a Managing Director at BizWorth, focusing on technology and partnership development to grow the company’s reach and advisor network. He holds a BBA from Baylor University and a Master of Science in Leadership and Organizational Change from Northwestern University. Dan brings a strong background in strategic marketing, technology adoption and business development.

Madeleine Fontein, PMP
Business Operations Coordinator

Madeleine Fontein is the Business Operations Coordinator at BizWorth, where she supports production management and streamlines business operations to ensure efficiency across teams. She holds a Bachelor of Commerce from Dalhousie University and is a Certified Project Management Professional (PMP). With a strong foundation in operational strategy and process improvement, Madeleine plays a key role in delivering high-quality valuation services.

Weston Tschirhart, ECA
Certified Machinery & Equipment Appraiser

Mr. Tschirhart is a certified machinery and equipment appraiser at BizWorth. Specializing in over 10 years of agricultural, industrial and restaurant machinery and equipment, Mr. Tschirhart’s expertise ensures accurate and reliable assessments for clients across various industries and locations throughout the country. A proud graduate of the University of Texas at San Antonio (UTSA), Weston's analytical prowess and commitment to excellence make him a valuable asset in providing comprehensive and accurate machinery and equipment appraisals to clients from coast to coast.

Kristin Jensen
Partner Operations Manager

Kristin Jensen is the Partner Operations Manager at BizWorth, where she serves as the primary liaison for partner engagement and support. She oversees onboarding, communications, and process optimization to ensure a seamless experience for BizWorth’s network of valuation partners. Kristin holds a Bachelor’s Degree from Colorado State University.

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Resources

Assessing the Worth of Auto Repair Businesses: BizWorth's Specialized Valuation Expertise

BizWorth offers specialized valuation services for auto repair shops, assessing assets, market position, and growth potential for informed decisions and competitive advantage.