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This is a full-service automotive repair shop operating from a busy boulevard location in Van Nuys, California, that has been used as a mechanic shop for over 25 years. The facility runs 12 bays with lifts, holds 40-plus cars in a gated lot, is RepairPal Certified, and comes fully equipped including tire mounting and balancing gear. The business generates roughly $2.04M in revenue with $510K in reported cash flow, driven by consistent customer flow through Google, Yelp, and Meta advertising.
Beyond core mechanical repair, the location carries multiple revenue angles. There is a dedicated window tinting bay with community recognition as a tinting center, and a used car dealership license is currently operated from the premises, which a qualified buyer may be able to continue subject to licensing. That optionality gives a new operator several ways to stack revenue on top of the existing repair base.
The seller is relocating out of state and offers two months of training. The building is leased at $13,000 per month across 19,512 square feet, so this is a going-concern operations sale without real estate. Asking price is $550,000, which includes $250,000 of inventory and $50,000 of FF&E, putting the multiple near 1.08x cash flow.
Why we like it
- The headline economics are striking: $510K cash flow on $2.04M revenue at a $550K ask is roughly 1.08x, and the price includes $250K of inventory plus $50K of FF&E. Even if the true normalized SDE is lower after scrutiny, the asset-backed portion of the price alone covers a meaningful chunk of the purchase.
- Auto repair is genuinely non-discretionary: people keep cars on the road longer in downturns, which drives maintenance and repair demand. A 25-year location history with RepairPal certification and neighborhood recognition creates a moat that new entrants cannot buy overnight.
- The 12-bay, 40-car layout with tire equipment and a dedicated tinting bay gives real operating capacity, and the standing used car dealership license adds a third revenue lever. A capable operator can push utilization across repair, tinting, and vehicle sales from a single site.
- Customer acquisition is already systematized through Google, Yelp, Meta, and RepairPal ads, so lead flow is not dependent on the departing owner personally. That makes the transition far cleaner than a shop that runs purely on the owner's relationships.
How to improve it
- Verify and then formalize the marketing engine. The listing cites optimized RepairPal, Google, Meta, and Yelp ads, so pull the actual ad accounts, cost per lead, and conversion data, then reallocate spend toward the highest-ROI channels within the first 90 days.
- Activate the underused window tinting bay as a distinct profit center with its own pricing, booking flow, and promotions. Tinting carries strong margins and short labor cycles, and the community already recognizes this location for it.
- Evaluate reinstating or expanding the used car dealership operation under the existing license. Even a modest wholesale-to-retail flip volume off the 40-car gated lot could add a high-dollar revenue line alongside repair.
- Install a service advisor and technician incentive structure tied to average repair order and customer return rate. With 12 bays, throughput and ticket size are the levers, and formal comp plans usually lift both quickly.
- Add a recurring maintenance membership or prepaid service package to convert one-time ad-driven customers into repeat visits. This smooths revenue and reduces dependence on continuous paid acquisition.
- Renegotiate or lock the lease terms early given the $13,000 monthly rent on 19,512 square feet. Securing a long lease with options protects the goodwill tied to this specific 25-year location before any capital goes in.
- Build a simple CRM and text-back system given the owner's admitted phone habits (text first, no unknown calls). Faster response to inbound leads directly recovers revenue that is likely leaking today.
Diligence notes
- The $510K cash flow claim needs hard verification against tax returns, merchant processing statements, and bank deposits for at least three years. A 1.08x multiple this low often signals either add-back inflation, seller motivation, or numbers that do not survive scrutiny, so confirm which before getting excited.
- Confirm what the used car dealership revenue and the window tinting revenue actually contribute versus core repair. The listing implies optionality but does not break out how much of the $2.04M comes from each line, which changes both the risk profile and the improvement thesis.
- The entire value is location-dependent and the building is leased at $13,000 per month. Obtain the current lease, remaining term, renewal options, and any rent escalators, because losing this 25-year site would erase most of the goodwill you are paying for.
- Validate the $250,000 inventory figure by physically counting and aging it, since stale or overvalued parts inventory is common in shops. Also confirm the FF&E and equipment are owned free and clear and functional, not leased or financed.
- Assess staff dependency and retention. The sellers cite 20-plus years of experience and are leaving the state, so identify which technicians and the service advisor stay, what their comp is, and whether the shop can run without the owner couple present.
- Understand why a business reportedly earning $510K is priced at $550K. Interview the seller on real reason for selling beyond relocation, check for pending liabilities, code or environmental issues, permit status, and any RepairPal or licensing conditions that transfer with the sale.
Source
- Multi-Generation Auto Repair & Towing - Kansas
- Auto Reconditioning Shop - Minority Stake
- Jacksonville Auto Repair Franchise - Branded Service Unit
- Full-Service Auto & Light Truck Repair Business, 18-Year Houston Shop
- Suffolk County Auto Body Shop - 40-Year DRP Operation
- Franchised Auto Paint & Collision Center, Orange County CA
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