Auto Repair Shop Valuation
Auto Repair Business Valuation Calculator & Exit Planning Built for Shop Owners
We built one platform that tracks your auto repair business's value monthly, identifies exit gaps early, and ensures your personal finances align with your exit timeline.
1,000+ Businesses have joined YourExitValue.com
Most Auto Repair Owners Have No Idea What Their Business is Actually Worth
Current Auto Repair Valuation Multiples (2026)
Auto Repair values are strong due to increased buyer demand from automotive consolidators like Driven Brands. Here's what companies sell for:
Every business is different. That's why you need to track your value.
Included in Your Exit Value is a complete Exit Planning Assessment where you track your progress quarterly against your results from the previous quarter.
Know your number and watch it grow
Most business owners guess at their value. You'll know it with precision.
Our platform uses six proven valuation methodologies to give you a complete picture of what your business is worth today—and tracks how that number changes month over month. No more waiting for annual appraisals or paying $15K+ for outdated reports.
See your trends. Spot opportunities. Make informed decisions
What Actually Drives Auto Repair Business Value
Revenue and earnings are the two most influential factors in your auto repair business's valuation. But not all companies are valued equally. Here are the factors that move your number up—or down:
Car Count
250+ Cars/Month
Shops with strong fleet and commercial accounts have built-in referrals. Fleet accounts provide recurring, predictable revenue and typically aren't shopping on price—they value reliability and service speed.
Low car count = location/marketing issues
Average Repair Order
$400+ ARO
ASE-certified technicians justify higher labor rates and build customer trust. Certifications differentiate your shop and allow premium pricing—buyers see this as a moat against price competition.
Low ARO = leaving money under hood
Owner in Bays
Office Role Only
Owners on the shop floor are hard to replace. Transition to front counter management. Buyers pay more when the owner handles customer relationships and oversight rather than turning wrenches.
Technician-owners can't be replaced
Fleet Accounts
15%+ Fleet Work
Average RO of $400+ shows effective service writing and upselling. High repair order value indicates strong customer trust and effective service advisors—key metrics buyers analyze closely.
Retail-only = constant marketing
Shop Condition
Modern Equipment
Diesel, fleet, or specialty work commands premium pricing. Specialization creates pricing power and reduces competition—you're not competing with every quick lube and tire shop.
Outdated = can't service newer cars
Digital Presence
4.5+ Star Reviews
Modern shop management software shows professional operations. SMS integration, digital inspections, and automated follow-ups demonstrate operational sophistication that transfers to new ownership.
Bad reviews kill value
How to Value an Auto Repair Business
The auto repair industry includes over 280,000 shops across the United States generating approximately $130 billion in annual revenue. As vehicles become more complex and the average car age exceeds 12 years, understanding how to value an auto repair business is essential for shop owners planning their next chapter.
Seller's Discretionary Earnings (SDE) is the standard valuation method for auto repair shops. SDE adds owner compensation, benefits, depreciation, and discretionary expenses back to net income. Auto repair businesses typically sell for 1.5x to 3.0x SDE, with shops at the higher end demonstrating strong car counts, high average repair orders, technician retention, and operations that don't require the owner to be a wrench-turner.
As a rule of thumb, auto repair shops generally trade between 0.25x and 0.45x annual revenue. Shops with higher gross margins on parts and labor — particularly those achieving 55%+ combined gross profit — command the upper end of this range.
What uniquely drives auto repair valuations is the technician workforce and facility lease. Certified ASE technicians are extremely difficult to recruit, so a shop with a stable, skilled team is worth significantly more than one where the owner is the primary technician. Facility factors also matter — shops with multiple bays, modern lifts and diagnostic equipment, and long-term leases at reasonable rents attract premium offers. Buyers also pay close attention to the shop management system and whether there's a documented history of customer retention and reviews.
The auto repair industry has benefited from aging vehicle fleets, increasing repair complexity, and growing consumer preference for independent shops over dealerships. Multi-shop operators and private equity groups have entered the independent repair space, driving up valuations for well-run operations. Use our free calculator above to get your instant estimate, then track your value monthly with YourExitValue.
Frequently Asked Questions
What multiple do auto repair businesses sell for?
Most auto repair businesses sell for 1.8x – 2.5x SDE or 0.3x – 0.5x annual revenue. However, the range is wide. Companies with strong car count can command significantly higher multiples. YourExitValue tracks exactly where you fall on each value driver.
How does car count affect my company's value?
Car Count is one of the biggest value drivers for auto repair businesses. Automotive consolidators like driven brands specifically look for companies with strong performance here. Improving this metric can significantly increase your multiple.
How long before selling should I start tracking my auto repair business value?
Ideally 1 to 5 years before your target exit. This gives you time to improve your car count, reduce owner dependence, strengthen your team, and document growth trends buyers pay premium prices for.
Who buys auto repair businesses?
Common buyers include automotive consolidators like Driven Brands, as well as individual buyers looking to own a business and strategic acquirers. Each buyer type values different aspects. YourExitValue helps you understand what each looks for.
What valuation method is used for auto repair businesses?
Most auto repair businesses are valued using SDE (Seller's Discretionary Earnings) multiples for smaller companies under $1M in earnings, and EBITDA multiples for larger companies. Revenue multiples (0.3x – 0.5x) are sometimes used as quick reference.
What's the fastest way to increase my auto repair business value?
The fastest improvements typically come from: 1) Improving your car count to hit the target, 2) Reducing owner dependence, 3) Documenting your systems and processes, and 4) Cleaning up financials. Most owners add 20-40% in 12-24 months.