Full-Service Auto & Light Truck Repair Business, 18-Year Houston Shop

$5.8M

Revenue

$720K

SDE

3.5x

Multiple

Subscribe Free

Read the full deal writeup

Get Free Access

Already a member? Sign in

Full Editorial Writeup

This is a full-service auto and light truck repair shop in Houston, Texas that has been running since 2008. It handles the full menu of automotive work: diagnostics, brakes, suspension, engine repair, transmission service, preventive maintenance, and fleet maintenance for both retail walk-in customers and commercial fleet accounts. The shop operates out of an 11,200 square foot leased facility staffed by 22 people, including ASE-certified technicians, and services over 2,800 active customer vehicles.

The standout feature here is scale. At $5.8M in revenue, this is not a two-bay corner garage. It is a sizable, multi-technician operation with real infrastructure and an established brand in a large, growing metro market. Roughly 12.4% EBITDA margins ($720K on $5.8M) are respectable for a high-volume repair shop where parts and labor eat a big chunk of revenue.

What makes this durable is the mix of recurring fleet maintenance relationships layered on top of a large base of repeat retail customers. Fleet accounts create predictable, scheduled work that smooths out the lumpiness of retail traffic. The seller is transitioning to semi-retirement and will assist with a handover, and the real estate is available separately or by lease assumption, so the buyer is buying an operating business rather than a real estate deal wrapped in a shop.

Why we like it

Earnings quality is anchored by $720K EBITDA on $5.8M revenue with a large repeat base of 2,800 active vehicles plus recurring fleet accounts. That is not project-driven revenue, it is high-frequency, need-based work that recurs as vehicles age and accumulate miles. The 3.5x multiple on EBITDA is reasonable for a shop of this size and history.
Auto repair is genuinely recession-resistant because when money is tight, people keep older cars running longer rather than buying new. Brake jobs, transmission work, and preventive maintenance do not stop in a downturn, they arguably increase as new-car purchases decline. This is exactly the kind of boring, essential cash flow that compounds through cycles.
Houston is a large, growing, car-dependent metro with long commutes and no meaningful public transit alternative, so demand for vehicle repair is structurally strong. The commercial fleet relationships add a B2B layer that most independent shops never build. Expanding fleet accounts is a clear, executable growth path.
The operation already has 18 years of reputation, ASE-certified technicians, and documented operating procedures, which lowers the execution risk for a new owner. An operator who can hire and retain techs and run the P&L can step in without reinventing the business. The seller staying on for transition de-risks the handover further.

How to improve it

Attack the fleet segment aggressively in the first 90 days by mapping every commercial fleet operator within a 15-mile radius and pitching structured preventive maintenance contracts. Fleet work is scheduled, higher-margin, and recurring, and it insulates the shop from retail seasonality. Even a handful of new mid-size fleet accounts can move EBITDA meaningfully.
Install modern shop management software with online scheduling, automated service reminders, and text-based approvals. With 2,800 active vehicles, a disciplined reminder system for oil changes, brake inspections, and mileage-based services will pull dormant customers back in and lift average ticket. This is low-cost revenue that is currently being left on the table.
Audit technician utilization and bay throughput to identify slack capacity. Extending operating hours or adding a second shift on the existing lifts spreads fixed rent and equipment cost across more billable hours. The listing itself flags added service capacity as a growth lever.
Build a written technician recruiting and retention program including pay banding, ASE certification bonuses, and a clear apprenticeship path. The listing explicitly names technician availability as the primary constraint on growth, so solving the labor pipeline is the single highest-leverage operational fix. Growth here is gated by people, not demand.
Layer in higher-margin service categories like tires, alignments, and fleet tire programs if not already offered. These are natural attachments to existing brake and suspension work and increase revenue per visit. Cross-selling to an existing 2,800-vehicle base is cheaper than acquiring new customers.
Tighten the parts procurement and gross margin discipline. At this revenue level, small improvements in parts markup consistency and vendor rebate capture flow straight to EBITDA. Standardize labor guide times and shop-supply fees so no billable work is under-recovered.

Diligence notes

The listing discloses $720K EBITDA but marks SDE as not disclosed, so confirm the exact owner add-backs and whether the $720K is before or after owner compensation and rent normalization. Verify EBITDA against three years of tax returns and P&Ls, not just a broker summary. Understand how much of profitability depends on the current owner's day-to-day involvement.
The lease is the central risk given it expires 12/01/2026 at $9,300 per month with real estate offered separately. Negotiate a long-term lease or a purchase option before closing, because the entire business is stranded if the landlord declines to renew or raises rent sharply. Landlord approval on the lease assumption is explicitly required.
Scrutinize the fleet accounts: get the customer list, revenue concentration, contract terms, and how long each relationship has existed. Recurring fleet work is a major value driver, so any single account representing an outsized share of revenue is a concentration risk. Confirm these relationships transfer and are not tied personally to the seller.
Assess technician tenure, compensation, and retention risk given the listing names labor availability as the growth constraint. Losing even two or three ASE-certified techs post-close could impair capacity and reputation. Review payroll, turnover history, and whether any key techs are near retirement or flight risk.
Validate the equipment condition and remaining useful life of lifts, diagnostic tools, and shop equipment included in the sale. Aging diagnostic equipment can require expensive updates to service newer vehicles. Get the complete equipment list and independently inspect it during diligence.

Source

Originally listed on BizBuySell. View original listing →