Question for shop owners / managers

[SkysTheLimit]

My brother in law is looking at opening a shop and one of my wife's clients is going to sell her (yes, her) shop. She wants out and said she'd sell it for the inventory / tools / equipment.

What would a decently equipped 2 or 3 bay shop have tool wise in it? They do pretty much everything repair wise except body work / paint. I know diagnostic computers and such are big $$ and the location (i think is great) caters to upper middle class to upper class neighborhoods. That means mostly newer cars. Big SUVs, lexus, acuras, etc.

I know they have a couple lifts, welder(s), probably a tube bender since I know they do exhaust. tire changer, probably capable of doing the big 20"+ rims.

Even a ballpark would help. The owner said she'd talk numbers if he was serious but I'm curious.

thx

 

[4X4HIGH]

If he is serious then he should go to the shop and take an inventory and start figuring out what things are worth then make an offer. When someone sells a business they usually have a price in mind and then also a good will value as well which is generally a years salary on top of the price.

 

[Metrodps]

No ideal what a beauty shop is worth sorry.

 

[sledheadak]

tell him not to do it!!!!!

 

[bozor1000]

First off. you need to make sure that you have a Solus, or Tech 2, or even a Genesis computer to read OBD computers. Those are pretty pricey.

 

[SkysTheLimit]

First off. you need to make sure that you have a Solus, or Tech 2, or even a Genesis computer to read OBD computers. Those are pretty pricey.

This is the type answer I'm looking for, thank you. I'm sure it'll be well into the 6 figures, I was just curious if it would be 100k or 500k.

My brother in law is over seas so I guess I'll just have to go down there one day and take a look around and write down what all they have.

thx

 

[bozor1000]

This is the type answer I'm looking for, thank you. I'm sure it'll be well into the 6 figures, I was just curious if it would be 100k or 500k.

My brother in law is over seas so I guess I'll just have to go down there one day and take a look around and write down what all they have.

thx

Are you buying a General Repair Shop or are you specializing in one particular system; FOR EXAMPLE- Suspension, Lifts, Lowering, Engine Building, Engine swaps? Another thing that you have to look at are your Technician's. Are they experienced? Do they have a some kind of Vocational School like UTI or NTI? Or did they learn on the job? Your technicians can make or break you! Two words that you will love to hate: Come back! That is when the job doesn't get properly diagnosed. And you have to redo the job for free! I have a friend out here that specializes in Honda and Acura engine swaps in Irvine, CA. He started his shop from the ground up and started it with about 10,000. Now after about 2 years, he is expanding. He is incorporated. That is another thing that you also need to look at. When you incorporate, it seperates your Business assets from your personal assets. So for whatever reason you get sued, a customer can only sue you for what you are insured for through your Business. THEY CANNOT TOUCH YOUR PERSONAL ASSETS. Right now I am starting my own shop. But I want to specialize in 1973 to 1987 Blazers and K Series trucks. But I don't always have a lift to do or a 350 to 454 swap, so I do a lot of general repair. Any questions, PM me. STEVE

 

[SkysTheLimit]

Thanks for the info. I appreciate it. It's a general repair shop. What I think is really nice about it is the location. It's the only shop around for a few miles and there are a few thousand houses in the immediate vicinity. The area is mostly yuppie types whose tool collection is limited by what can be found in the drawer in the kitchen. I think with the right marketing, you could clean up taking care of the soccer moms yukons and daddys lexus.

We'll see how serious he is about it and what she'll sell it for.

thanks again.

 

[uao85]

yeah if its in an upper scale IE new cars and such, if you dont have something to read obd I & II computers, it will be worthless to open shop. on top of that I would look at general maintenance repair equipment, like brake equipment and obviously air tools, and other tools for general maintenance in mind.

Remington

 

[bozor1000]

yeah if its in an upper scale IE new cars and such, if you dont have something to read obd I & II computers, it will be worthless to open shop. on top of that I would look at general maintenance repair equipment, like brake equipment and obviously air tools, and other tools for general maintenance in mind.

Remington

Good point. Also, have an O-SCOPE and various other equipment to read the different sensors on these newer type cars! Also look at purchasing ALL-DATA or SHOP KEY computer programs for online manuals!

 

[Confedneck79K30]

a word of advice, used lifts are not worth new prices, but used, kept up to date scan tools are worth very close to new prices...

a used 7k lb lift is worth about 1500 bucks, you can buy new ones, installed for about 3800..

a snap-on solus is 3700 new, 4500 with european software, if you want an oscilliscope, look right past one of those big, ginormous roll around POS units.. get a MODIS, fastest and most complete scan tool, equipped with european software, you'd be set, as it also contains an oscilliscope...

used tire machines are worth about 3500-4800 if it will do 20s plus, and in good shape, is worth towards the upper end, a balancer, depending on features, is worth its weight in gold, you're looking about 5k for one new, that wont measure RFV (road force variation) and 6200 or so for one that will... alignment racks are about 14k new, so figure 10k for a newer model in good shape, with recent calibrations and updates...

then you'll pay for property, business accounts and "blue sky" which is a number that YOU (person buying) should come up with based on the gross profits of the business, for one year, times 1.5 or so, to give the old shop owners something to run with... just a start and some basics, but you get the idea

 

[SkysTheLimit]

Wow, thank you. great info.