Will the technicians stay after I buy an auto repair shop?
No one can promise it, so find out what they depend on. Ask who holds the certificates the shop relies on, who owns the tools in the bays, how each technician is paid, and meet the lead technician before closing to hear what would keep them.
A repair shop sells time that skilled people provide. If the lead technician leaves after closing, the bays may sit empty and the customers may follow. The seller cannot guarantee anyone’s decision, but you can learn how much the shop leans on each person and what each one wants. Start with the people, not the premises.
Who holds the certificates
List each technician, their trade qualifications and the work they are cleared to do. Ask the seller whether any work needs a certified person, and what happens to that work if one person leaves. Ask the seller how many hold the key credentials, and whether the shop is leaning on a single person for work that brings in the most business.
Tools, pay and arrangements
Technicians often own their own tools, and some shops lease bays or pay by the job. Find out which tools are the shop’s and which are the person’s, since a departing technician takes theirs. Ask how pay is structured, whether there is a bonus, and whether any written agreements exist. Your lawyer can then tell you what carries over to you.
Meet the lead technician early
Ask the seller when and how the staff will hear about the sale, and ask to meet the lead technician before closing. Ask what they like about the shop, what frustrates them and what would make them stay. Plan the first weeks with them: keep the pay and routine steady, and be clear about what you will change and what you will not.
More on this is in how to keep key employees after you buy a business.
Related reading
15 pages on the same subject, grouped by topic.
Buying
- GuideBuying an auto repair business in Canada
- GuideBuying an independent auto repair shop in Canada
- 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
- GuideWhat do I need to know to buy an auto repair shop in Ontario?
- Expert answerFranchised or independent auto repair shop: what changes for a buyer?
- Expert answerHow do I tell what a tire shop owner actually takes home?
- Expert answerShould I buy a laundromat franchise or an independent laundromat?
Due diligence
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Skilled Trades OntarioRegulatorAutomotive Service Technician
- 02Red Seal Program (Canadian Council of Directors of Apprenticeship)GovernmentRed Seal Program
- 03Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
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