Suffolk County Auto Repair Shop, 20-Year New York Service Center

$1.2M

Revenue

$500K

SDE

2.0x

Multiple

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Full Editorial Writeup

This is a two-decade-old auto repair and service center in Suffolk County, New York, serving both modern and classic vehicles. The business covers the full spectrum of work from routine maintenance and diagnostics to repair and restoration, run by an ASE-certified technical team using modern shop equipment. It generates roughly $1.2M in annual revenue with $500K in reported owner cash flow, a strong margin profile for an independent shop.

What makes this one notable is the earnings quality relative to the ask. At $995K against $500K of cash flow, you are buying at roughly 2x SDE, which is on the low end for a profitable, established auto services business. The classic vehicle restoration niche adds a differentiated, higher-margin revenue stream that most commodity oil-change shops do not have.

The seller is retiring and offering to train, with aggressive seller financing on the table: $575K down and $420K carried over 60 months at 5%. That structure means the seller is keeping meaningful skin in the game, which both validates the earnings and reduces the buyer's upfront capital requirement. Only three part-time employees are listed, so a buyer should pressure-test the real labor needs behind the stated cash flow.

Why we like it

The numbers are the headline here: $500K cash flow on $1.2M revenue is a 42% owner-earnings margin, and the $995K ask prices this at roughly 2x SDE. That is a cheap entry for a profitable, established service business, and it leaves real room between purchase price and intrinsic value.
Auto repair is as recession-resistant as service businesses get. When money gets tight, people keep their cars longer and spend more fixing them rather than buying new, which supports demand through downturns. The classic vehicle restoration niche also attracts enthusiast owners who are less price-sensitive.
A 20-year operating history, ASE-certified technicians, and a loyal local clientele mean the goodwill and reputation are already built. Suffolk County is a dense, high-income Long Island market with a large installed base of vehicles that need servicing and no sign of going away.
The seller carry is a gift for the right buyer: $575K down with $420K financed over five years at 5% means the seller is betting on the business continuing to perform. That shared risk de-risks the deal and signals the earnings are real rather than dressed up for sale.

How to improve it

Install a maintenance membership or service-plan program to convert one-off repair customers into recurring revenue. Monthly or annual plans covering inspections, oil changes, and priority scheduling smooth cash flow and increase customer lifetime value, which is the single biggest weakness of a transactional repair model.
Lean harder into the classic vehicle restoration niche, which carries premium pricing and attracts customers from well beyond the local radius. Build a portfolio, document builds on social media, and market to collector car clubs to capture higher-margin project work.
Audit the staffing structure immediately, because three part-time employees supporting $1.2M in revenue looks thin. Determine how much of the production depends on the owner personally, then recruit or promote a lead technician and service manager to remove key-person risk before it bites.
Add fleet maintenance contracts with local small businesses, delivery operators, and municipal vehicles to create contracted, repeating volume. This fills bays during slow periods and provides a predictable revenue floor that a purely retail shop lacks.
Implement modern shop management software and online booking if not already in place. Capturing customer data, automating service reminders, and enabling digital scheduling increases repeat visits and gives you the operating metrics needed to scale.
Review bay utilization and consider extending hours or adding a second shift if demand supports it. With FF&E already included and equipment in place, incremental revenue from higher throughput flows almost entirely to the bottom line.
Build out tire sales and state inspection services if not already offered, as these are high-frequency, traffic-driving services that create natural upsell opportunities into higher-margin repair work.

Diligence notes

Verify the $500K cash flow with three years of tax returns and bank statements, and understand exactly what add-backs produce that figure. A 42% SDE margin is high for an independent shop, so confirm it is sustainable and not inflated by deferred maintenance or owner labor that will need to be replaced.
Clarify the real labor picture, because three part-time employees cannot plausibly produce $1.2M in revenue without significant owner involvement. Quantify how many hours the retiring owner works, what they do, and the cost to replace that capacity, then reprice the true normalized earnings.
Confirm the real estate situation and lease terms, since the asking price excludes property. Review the length, rent, escalation clauses, and renewal options of the facility lease, because an auto shop is only as good as its location and a short or expiring lease is a major risk.
Assess equipment condition and remaining useful life on the $200K of included FF&E. Lifts, diagnostic scanners, and alignment machines are expensive to replace, so verify they are current, well maintained, and not a near-term capital expenditure hiding behind the stated profitability.
Dig into customer concentration and the mix between routine service and classic restoration revenue. Restoration work can be lumpy and project-based, so understand how much of the earnings are repeatable local service versus one-time high-dollar builds that may not recur.
Validate the seller financing terms in writing and confirm there are no competing liens on the business or equipment. Also verify the reason for sale is genuine retirement and not a hidden issue such as a pending lease loss, environmental concern, or key-technician departure.

Source

Originally listed on BizBuySell. View original listing →