How to Appraise an Auto Body Shop

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The Three Ways to Appraise a Business

1. The ASSET VALUATION METHOD.

This method is basically used when a body shop does less than $400,000 a year in gross income and the seller is making wages, but no real profit above what he would be paid if working for another. On this size business, a buyer is willing to pay for the assets of the business but little or nothing for goodwill. The equipment is usually worth between $50,000 and $100,000, depending on how many frame machines the business owns and how nice a spray booth the business owns.

I have seen some specialized shops sell for more than the above number because they have a truck spray booth or another business attached to the main business. Examples of attached business might be an auto repair shop or towing operation.  Also the location, size and real estate rental amount will influence the value of any business, to some degree.

2. The second method, I call the GROSS SALES METHOD.

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Marketing Your Restaurant for Success

Marketing Your Restaurant for Success

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Expert strategies and tips for marketing your restaurant, franchise, or fast food joint.

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Buying an Auto Body Shop

Everything You Wanted To Know About Buying An Auto Body Shop

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A body shop can be a great investment, if you are the right kind of buyer. Who is the right buyer? Let’s discuss that in detail. Here is what we will cover in detail.

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Why Are You Doing Your Auto Body Shop Work for Nothing? A Battle Plan for Raising Your Rates

Why Are You Doing Your Auto Body Shop Work for Nothing? A Battle Plan for Raising Your Rates

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In my 15 years as a body shop broker, I have visited hundreds of body shops across the state. Almost 100% of the owners complain that, if they are being honest with me, they work too hard for too little money.  They want to sell their body shop business to some other poor sucker who will run into the exact same problems.

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Save the Earth

How to Advertise Your Business, Save the Earth and Make Money

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Making money keeping the environment green and pollutant free. It’s a win, win business. Read more

15 Questions You Should Ask Before Buying a Business

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15 Questions you should ask before making an offer, when buying a business.

Most people have questions they need answered before making an offer and before hiring help to evaluate, audit or review the business. The most commonly asked questions are as followed: Read more

Business Ownership Pitfalls: Being an Absentee Business Owner

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Business Ownership Pitfalls – Absentee Ownership

Many business buyers have the idea that they will buy a small business to create a second income. The idea is to put in 10 hours a week, or less doing the management functions such as, posting the quick books, making sure the employment forms are filled out correctly and are complete.

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When Buying a Business Does the Buyer Have Ethical Responsibilities?

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Choosing a Business to Buy – The Daily Grind Matters

A buyer has a responsibility to act in an intelligent manner when looking for a business. You are not only buying a business for yourself but for your spouse and children. The responsibility to your family requires a higher level of care than you would normally take to protect yourself.  Read more

Who Can You Trust to Loan Money To?

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True Story:

Glynn was a nice guy who was given $500,000 by his mother to buy a business, since his photography business went into the toilet. The money was burning a hole in Glynn’s pocket.

One evening Glynn met Joe at a local networking group. They started spending time together and became casual friends. Joe told Glynn he was an entrepreneur who owned different successful business in town. At least that is what he said.

One day, Joe told Glynn that he was opening a taco restaurant with two experienced restaurant partners. The business needed a taco machine with cost $10,000 and Joe was tight on cash. He asked Glynn to make a loan, secured by the taco machine. He would pay 10% interest-only payments for one year. Read more

Business Fraud

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Are your employees stealing from you? That is a form of business fraud.

If you own a business, of any size, did you ever consider that while you are working hard to make a living to support your family and staff, there are those that are also working very hard against your actions. Read more