How do I sell a small engine repair shop?

Ask yourself how much of the shop’s reputation is you. Buyers want to know that the customers, the parts and the know-how will stay once you leave. Selling well means preparing those things in advance. Give yourself time to get organized, and start before you list or speak to anyone outside the business.

Timing around the busy season

Buyers like to see a full busy season in the records, but you may not want to sell in the middle of one. Many owners prepare during the quiet months, show the books from the last full year and aim to close before the next rush. Talk to your accountant about when to start and what to have ready.

Records buyers will ask for

Pull together work orders by month, monthly sales, a list of regular and commercial customers, and a clear count of parts. Make sure the records agree with the bank statements. Make it easy for a buyer to follow the trail from job to deposit. Compare the list in what records to gather before selling a lawn care business.

Less dependence on you

If you do most of the repairs, buyers will ask what happens when you leave. Introduce a senior technician to key customers. Write down your routines, supplier contacts and pricing. Offer a handover period you are comfortable with, and put it in writing with your lawyer.

Abandoned units and old stock

• Contact the owners of machines left on the floor, and keep a written record.
• Ask your lawyer how to deal with units nobody collects.
• Separate current parts from old stock before a buyer counts it.

Working with a broker

A broker can reach buyers you could not. Ask whom the broker acts for, how they are paid and what your obligations are if you sign an agreement. Brokers are partners in this process, and good questions help both sides.