Strong margins, fair price, and real cash flow. This is what a solid deal actually looks like.
This is a full-service auto repair shop in Connecticut listed at $798K, generating just over $1M in revenue and about $329K in cash flow.
At first glance, it looks solid. But once you run the numbers, it becomes clear why this one stands out.
Deal Snapshot
Now let’s run this through a standard SBA-style scenario.
Financing Overview
After debt, you’re left with about $213K per year, which is extremely strong for a business under $1M.
Why This Deal Works
This deal is strong because everything lines up.
- High margins: 32% vs ~22% industry average.
- Fair valuation: 2.42x multiple, right in line with comps.
- Strong cash flow: Over $200K after debt.
- Excellent DSCR: 2.82 gives significant buffer.
- Fast payback: Around 0.4 years to recover down payment.
Operational Strength
Beyond the numbers, the business itself is built on solid fundamentals.
- Loyal customer base: 8,000+ clients with high repeat rate.
- No paid marketing: Strong word-of-mouth and reputation.
- Unique positioning: One of only two emissions-certified shops locally.
- Competitive edge: Offers free loaner vehicles.
- Experienced team: Owner is already semi-absentee.
Things to Verify
Even strong deals need a closer look.
- Recent revenue dip: Understand why performance declined.
- Lease terms: Confirm long-term stability of the location.
- Staff dependency: Ensure key technicians stay post-sale.
- Seller financing: Small note available, but clarify terms.
BizHub Verdict
This deal scores a 9.0 / 10. It checks almost every box.
Strong margins, fair pricing, excellent debt coverage, and real cash flow.
It’s not flashy. But it’s exactly the kind of deal serious buyers look for.
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