Are you wondering how much your automotive repair shop is worth? General auto repair shops make up a large portion of the auto services industry. Given the number of vehicles on the road, this is no luxury business with customers needing either repair or maintenance on a regular basis. Independent auto repair shops are usually privately owned and focus on a number of essential services for the ever-growing pool of cars.
This video goes over how to do a business valuation of your automotive repair shop.
First, take a look at some key industry statistics. Unsurprisingly, well-established auto repair shops tend to command consistent earnings and higher profitability. A typical way to estimate the value of a company in this industry is to use the annual revenue as the key metric. Also, add the inventory to this number for a more accurate valuation. The auto repair centers that focus on excellent customer service tend to be more valuable. People are more likely to pay for top-quality service and return when the need arises.