How do I check an auto repair shop’s job records before buying?
Ask to see repair orders for a sample of recent weeks and match them to the books. Look at the mix of work, how often customers return, how many jobs came back as comebacks, and what is still open. Records show what the shop does, not just what it earns.
Ask for the repair orders themselves, not just a summary. Pick weeks at random, including slow ones, and trace several jobs from the written order to the invoice to the deposit. If the three do not line up, ask why.
Read the work mix. A shop that depends on a few large jobs behaves differently from one that does steady maintenance. Ask which types of work earn the most for the labour involved, and which ones the technicians avoid. Check how parts are priced and how returns are handled.
Look for repeat customers and for jobs that came back. Ask how comebacks are recorded and who pays for the fix. A shop that tracks them is usually more honest about quality. Ask what is open on closing day: vehicles in the bays, parts on order, warranty claims and customer deposits. Also ask which technicians hold the certifications the shop relies on and whether they will stay. Your accountant can help you check that the books match the job records. Notice how tidy the records are. Complete, legible orders with customer authorizations suggest a shop that runs carefully, while patchy ones raise questions about the books too. Talk with a few long-standing customers if the seller agrees, and ask the technicians what the shop does best.
Key takeaways
- Trace sample jobs from repair order to invoice to deposit.
- Ask how comebacks are recorded and who pays for them.
- List everything that is still open on closing day.
Related reading
15 pages on the same subject, grouped by topic.
Due diligence
- GuideAuto body and collision repair shop due diligence
- GuideAuto glass repair and replacement shop due diligence
- GuideDue diligence on an auto repair business
- ChecklistAuto repair business buyer checklist
- GuideDue diligence on a franchised auto repair shop
- GuideDue diligence on an independent auto repair shop
- Expert answerHow do I check a taproom’s recipe records and batch logs before buying?
- Expert answerWhat should I look for in a motel’s guest complaint records before buying?
- Expert answerHow do I see how much a courier firm leans on rush same-day jobs?
Buying
- Expert answerCan I buy an auto repair shop if I’m not a mechanic?
- GuideBuying a franchised auto repair shop in Canada
- GuideBuying an auto body and collision repair shop in Canada
- GuideBuying an auto glass repair and replacement shop in Canada
- GuideBuying an auto repair business in Canada
- GuideBuying an independent auto repair shop in Canada
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are financial statements?
- 03Business Development Bank of CanadaGovernmentMajor pitfalls to avoid when negotiating a purchase agreement
Deavo is an advertising and listings platform, not a brokerage, law firm or valuation firm. This page is general information, not legal, tax, accounting or valuation advice, and rules differ by province. Confirm anything you rely on with a qualified professional before you act on it.