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?