Established Auto Body & Collision Repair Shop, Gallia County Ohio

$3.5M

Revenue

$600K

SDE

6.7x

Multiple

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Full Editorial Writeup

This is a long-established collision repair shop in Gallia County, Ohio doing $3.5M in revenue and $600K in owner cash flow. The business handles the full collision workflow from dent removal and bodywork to paint and full structural restoration, operating out of two buildings totaling 30,000 square feet with two drive-through downdraft paint booths, a brand-new alignment machine, and a new spot welder. Sixteen tenured technicians run the floor and all are expected to stay through the transition.

What makes this shop notable is its insurance channel and its cost structure. It has eight direct-payment insurance program partnerships that transfer with the sale, which is the lifeblood of collision revenue since most jobs are insurer-funded, and it reportedly spends nothing on marketing, drawing customers from 50-plus miles on reputation and word of mouth. The current owner has held the business for over 12 years and grew revenue by more than 40% during his tenure.

The asking price is $4M against $600K of cash flow, a 6.67x multiple that is rich for a single-location collision shop. Roughly $2M of that is described as tangible assets including tools, lifts, paint rooms, and vehicles, but the real estate is leased and moving to month-to-month, which is a meaningful overhang a buyer must resolve before closing.

Why we like it

Earnings quality is anchored by eight direct-payment insurance partnerships, which convert repairs into recurring, insurer-funded volume rather than one-off retail jobs. Collision demand is non-discretionary because wrecked cars must be repaired regardless of the economy, and the shop reportedly generates all of its volume with zero marketing spend, implying genuinely healthy unit economics.
The moat is a combination of insurer relationships, a 30,000 square foot facility with two downdraft paint booths, and a reputation strong enough to pull customers from 50-plus miles away. Collision work is capital-intensive and technically demanding, so a well-equipped shop with tenured certified techs is not easily replicated by a new entrant.
Demand tailwinds are structural: vehicles keep getting more complex with sensors and ADAS systems, pushing repair values and certification requirements higher, which favors established shops with modern equipment like the new alignment machine and spot welder. The listing also notes household and industry growth expected in the area over the next 3-5 years.
The operator advantage is real: 16 tenured employees are all expected to stay, and the seller grew revenue 40% over 12 years, showing the model responds to competent management. A buyer inherits a running crew and can focus on throughput, cycle time, and insurer mix rather than rebuilding from scratch.

How to improve it

Nail down the real estate first. The lease is shifting to month-to-month with the landlord, which is an unacceptable risk for a $4M purchase, so negotiate a long-term lease with renewal options or a purchase option before closing to protect the goodwill tied to this specific 30,000 square foot facility.
Push on insurer DRP mix. With eight direct-payment programs already in place, expanding into additional insurer networks and OEM certification programs (Honda, Toyota, GM) can add higher-value structural and ADAS calibration work that carries better margins than commodity repairs.
Layer in a modest marketing engine. The shop runs on word of mouth with zero spend, which is a strength but also untapped upside; adding a simple digital presence, Google reviews management, and fleet or dealership referral relationships could capture demand the shop currently never sees.
Attack cycle time and throughput. In collision, revenue is gated by how fast cars move through the paint booths and bays, so implementing production scheduling, parts pre-ordering, and a lean workflow can lift capacity and revenue without adding square footage.
Build a technician pipeline. Sixteen tenured techs are the asset and the risk, so establish an apprenticeship or vo-tech recruiting pipeline and retention incentives to protect against key-person departures as the founder exits.
Add ancillary revenue streams. Consider adding paintless dent repair, detailing, calibration services, and rental car partnerships to capture more wallet share per repair ticket and smooth out revenue during slower collision periods.

Diligence notes

Scrutinize the lease situation immediately. A month-to-month lease on the operating facility is the single biggest risk in this deal; verify the landlord's intentions in writing, understand renewal terms, and determine whether the $4M price is defensible if the business could be forced to relocate.
Verify the $600K cash flow and its composition. Confirm whether this is true SDE including a market-rate manager salary, and understand how much of the 40% revenue growth was volume versus pricing, plus how concentrated cash flow is across the eight insurer programs.
Test the durability of the DRP partnerships. Insurance direct-payment programs are often relationship-based and can be reassigned or cut; get contracts or written confirmation that all eight transfer and are not personal to the departing owner.
Validate the asset claim. The listing cites roughly $2M in tangible assets, so obtain a detailed equipment list with ages, conditions, and any liens, and reconcile that against the $4M ask to understand what you are actually paying for beyond hard assets.
Confirm employee retention. The thesis depends on all 16 techs staying, so review compensation, tenure, non-compete status, and any key-person concentration in specialized structural or paint work before assuming the crew stays intact through the transition.

Source

Originally listed on BizBuySell. View original listing →