Low Competition General Auto Service with Specialty.

8 Lifts. Gated Lot. Inventory included. SBA Lender Pre-Approved.



2022 Adj. Cash Flow:
Santa Clara County
Service Area:
South Bay Area
 Adjusted Profit Margin:
2 FT Techs, 1 FT Writer
Seller is 3rd tech
Reason for Sale:
The Seller
is Retiring
Goodwill: 36 Yr. Reputation, 4.7 Star Google reviews
Year Established:  1987
Services:  Auto & Truck general Repair – Including foreign and domestic brands. No Tire Sales. Specializes in Transmission rebuilds.
Furniture, Fixtures
& Equipment: 
8 lifts (2 Heavy Duty), Overhead oil pump system, new AC machine, separate transmission build area with press and parts cleaner, full office and reception area, gated parking lot.
Services:  70% transmission (of that 90% rebuild and 10% box) 30% comprises of breaks, electrical and AC
Clients:  90% Retail; 10% Fleet. Repairs per week, 20-25
Facility & Lease:  5000 sq. ft. Shop, seller owns building, pays himself fair market rent at $1.63psf, will write favorable terms for qualified buyer
Personnel:  2 FT Technicians, 1 FT Owner/transmission builder and 1 FT Service writer
Software Used:  All-Data, web site can be added
SBA Approval:  SBA Lender has approved this business for a *qualified buyer

Value Proposition

  • 38 years of established reputation
  • Exceptional customer reviews of 4.7 stars
  • < 15% Profit margin, $202,000 adjusted earnings 2022
  • Price includes inventory valued at $70,000
  • Hourly rate currently charged 20% below market rates
  • 2022 sales recovered better than 2019 sales
  • Experienced team of technicians and writer
  • Market projection sees increased demand as customers keep their cars longer
  • Located with other repair shops making synergy
SB829 Profit Margin Chart 20023_05_25

Revenue Breakdown

SB829 Revenue By Service Chart 20023_05_25
SB829 Cost By Class Chart 20023_05_25

Financial Highlights

  • Listing Price: $375,000 including Inventory
  • 2022 Cashflow (SDE): $202,840
  • 2022 Average repairs per week 20 to 25
  • 2022 Average R/O $933
  • Parts cost listed in Operating Expenses
  • 2022 Parts Expense was $619,246
  • Inventory value estimated at $70,000
  • Recommended working capital $50,000
  • All equipment necessary to operate included in the sale
SB829 Sales & Cash Flow Chart 20023_05_25

Cashflow Analysis

SB829 Financial Table 2023_05_25

Asking Price

The asking price is determined using a cash flow methodology. Cash flow is the sum of net income from the business plus any non-cash expenses, non-recurring items and any seller’s personal expenses. A multi-factor multiplier is applied to the cash flow based on the condition of the business.

For this business, a three-year average cash flow is applied making the business price more favorable to the buyer. The multiplier applied in this case is 2.26x, including inventory valued at over $70,000.

SB829 Multiple Box 2023_05_25

Funding Example

Purchase Price: $375,000

10% Buyer Down Payment


Buyer’s Equity

90% Bank Loan


10-Yearterm at a rate of 11.5% Fixed = Monthly loan payment of $4,815 including estimated closing costs

  • Cash Flow (SDE in 2022): $202,840
  • Annual Payment to Bank: $57,780
  • Net Profit (After Expenses and loan payment): $144,060
  • SBA made their calculations and pre-approval based on 3-year average ($165,573) which is lower than 2022 SDE of $202,840
SB829 Return Box 2023_05_25
SB829 Coverage Ratio Box 2023_05_25

* Please note that the decision of whether to extend a loan on any sale belongs to the bank, and this document does not guarantee specific terms or verify that financing is available.