Established Phoenix Auto Repair & Classic Restoration Shop, 49-Year Arizona Operator

$3.1M

Revenue

$769K

SDE

5.1x

Multiple

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Full Editorial Writeup

This is a full-service automotive repair shop that has operated in the Phoenix metro market since 1977, giving it nearly five decades of local brand equity and repeat customer relationships. The core business covers the bread-and-butter of independent auto service: general repair and maintenance, diagnostics and electrical, brakes, engine and cooling, A/C, transmission and drivetrain, tires, alignment, and suspension. On top of that recurring maintenance base sits a specialty classic-vehicle restoration division offering body, paint, and custom fabrication work, which is a higher-margin, lower-volume complement to the daily repair flow.

The operation runs out of two garages totaling roughly 7,473 SF on about 0.80 acres, staffed by 10 full-time employees, several with 20-plus years of tenure. The business generated approximately $3.09M in 2025 revenue with $769K in reported cash flow, a healthy roughly 25% owner-earnings margin for an independent shop. Management is calling out strong momentum, with January through May 2026 revenue up about 17.5% year over year.

Real estate is leased at $18,000 per month and is available for separate purchase, so a buyer takes on either an ongoing lease or a separate real estate negotiation. The seller is retiring after building the reputation, which makes this a clean succession play for an operator, a strategic buyer, or a multi-location platform looking to plant a flag in a large, aging-vehicle Phoenix market.

Why we like it

Earnings quality is strong for the category, with $769K of cash flow on $3.09M of revenue, roughly a 25% margin, in a business that has survived multiple recessions since 1977. Auto repair is need-based demand: people fix the car they have when they cannot afford a new one, which makes the earnings base durable through cycles.
The moat here is time and reputation. A 49-year operating history with a technician base averaging 20-plus years of tenure is very hard to replicate, and customer trust in a repair shop is sticky because switching means risk. That longevity plus advanced diagnostics capability differentiates it from newer independents and price-shopping chains.
Market tailwinds favor the buyer. Phoenix has a large and aging vehicle population, and average vehicle age nationally keeps climbing, which directly supports maintenance and repair volume. The reported 17.5% year-over-year revenue growth in early 2026 suggests demand is expanding, not flat.
There is a real operator advantage in the dual model. The core repair shop provides steady cash flow while the classic-car restoration division offers premium pricing and a defensible niche that most general shops cannot service. A capable operator can lean into whichever lane produces the best return on labor hours.

How to improve it

Stand up a proper CRM with automated service reminders and declined-work follow-up within the first 90 days. Repair shops routinely leave 10-20% of revenue on the table by not systematically re-engaging past customers, and a retiring owner rarely runs this tightly.
Pursue fleet and commercial accounts aggressively. Local delivery fleets, contractors, and small businesses need reliable maintenance vendors, and a few standing accounts smooth revenue and raise bay utilization versus purely walk-in retail work.
Audit and optimize technician utilization and pricing. Track billed hours versus available hours per tech, benchmark labor rates against Phoenix competitors, and adjust menu pricing where the shop is under-charging relative to its diagnostic and restoration capabilities.
Formalize and scale the classic restoration division as a distinct profit center. Restoration commands premium margins and attracts enthusiast clientele, so building a dedicated intake process, pricing model, and marketing funnel around it could meaningfully lift blended margin.
Invest in local digital marketing and reviews. A 49-year-old shop often under-indexes online, so capturing Google reviews, running geo-targeted search ads, and cleaning up the web presence can drive new-customer flow cheaply in a dense metro.
Negotiate the real estate. Since the property is offered separately, model both a long-term lease at favorable terms and an outright purchase, then use whichever lowers total cost of ownership and secures the location against a landlord who could otherwise displace the business.

Diligence notes

Verify the $769K cash flow with tax returns and add-back schedules. Confirm exactly what is included in owner earnings, particularly owner compensation, personal expenses, and whether the reported figure already nets the $18,000 monthly rent, because that rent is a real and recurring cost.
Stress-test the 17.5% year-over-year growth claim. Ask for monthly revenue by service line to confirm the growth is broad-based demand rather than a few large restoration jobs or one-time fleet work that will not repeat.
Assess key-person and technician concentration risk. With 10 employees and several 20-plus year veterans, understand who holds the customer relationships and specialized restoration skills, and whether any are likely to leave when the founder retires.
Nail down the real estate terms in writing. Since the property is leased at $18,000 per month and available for separate purchase, get the current lease, remaining term, renewal options, and the asking price for the land before committing, because losing the 49-year location would gut the goodwill.
Confirm the restoration division economics separately. Restoration and repair have very different margins, cycle times, and working capital needs, so break out revenue, gross margin, and labor hours by division to understand what you are actually buying.

Source

Originally listed on BizBuySell. View original listing →