How to Value an Auto Body Shop Business

The auto repair industry is valued at approximately $800 billion annually. With such a steep estimate, there’s no question whether the industry is thriving or not. Drivers are contributing to the industry’s value by investing more care and money in their vehicles and driving them for longer than ever before. With such a focus on car maintenance, when it’s time to sell your New Hampshire area auto repair shop, you need to ensure you’re receiving the best valuation possible. Read this guide from Sunbelt Business Brokers of New Hampshire to get the best advice on how to value an auto body shop business.

Review Your Business Records

Before you list your auto body shop for sale, you’ll need to ensure your business records are in proper order. It’s helpful to have all your most important documents, such as tax paperwork, inventory lists, and business performance reports, in a safe and accessible place. You’ll need to provide these documents to potential buyers to assure them that their potential purchase is a smart investment. Failure to have these records prepared and ready for viewing can result in a lesser valuation or even cost you the sale completely.

Determining Value

Ultimately, your auto body shop is only worth whatever a buyer is willing to pay. In many cases, the most common factors in valuations are cash flow and risk. Cash flow can be determined in a variety of ways, typically derived from Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) or Seller’s Discretionary Earnings (SDE).

Determining a final value is a complicated process, and best achieved with professional help. For more information on valuations in the New Hampshire area, see more about what determines a business’s value here.

Contact a New Hampshire Professional

In order to receive an accurate valuation, it’s best to enlist the help of a professional in your local area. Though the fundamentals of valuing businesses apply to each sale, every business is different and getting proper assistance at the local level is always best. For help valuing an auto body shop in New Hampshire, contact Sunbelt Business Brokers of New Hampshire. With over 30 years of experience successfully closing business deals, the Sunbelt network is the place to go to buy or sell any business.

If you’ve decided it’s time to sell your New Hampshire area auto body shop, contact one of our expert business brokers at Sunbelt New Hampshire! A Sunbelt broker will ensure you receive the best valuation of your auto body shop business and can help you successfully close the deal. Find our local office here to begin working with us.