Automotive & Location-Based · Seller readiness

Selling a Collision & Body Shop business

Published · Reviewed by The Diligence Standard Team · Updated

Owners should document insurer/DRP relationships, job cycle time, technician productivity and required equipment/certification investment before buyers do.

How the business works

Insurance DRP relationships, technician skill, cycle time, parts/labor economics and equipment/certification investment determine value.

Issues to resolve

  • DRP relationships may not clearly transfer
  • WIP and receivables are not cleanly reconciled
  • Equipment compliance needs are deferred
  • Technician productivity is not documented
  • Owner controls insurer relationships

Evidence to request and reconcile

  • Repair-order and WIP detail
  • Insurer/DRP agreements
  • Technician roster and certifications
  • Equipment and calibration assets
  • Receivables and supplement history
  • Cycle-time reports

Decision questions

  • Which insurer relationships are formal and transferable?
  • How much cash is tied up in open repairs and supplements?
  • What certification or equipment spend is coming?
  • How dependent is performance on one estimator or technician?
  • Does recent revenue reflect sustainable volume or backlog catch-up?