What should I check when buying an auto repair shop directly from its owner?

A private sale can be friendly and quick. It can also leave gaps, because nobody has packaged the numbers or lined up the paperwork. The owner may know the shop well and still not know what a buyer’s lender will ask for. Treat the first conversations as a request list, and keep a written record of what you were given and when.

Job history against paid hours

The shop software holds the real story: jobs opened, hours billed, parts sold and repeat customers. Ask for a report and compare the billed hours with the hours the technicians were paid. A large gap can mean slow work, free repairs or a bay that sits empty. Ask the owner to explain what you see, then check the answer against the books.

Equipment, suppliers and the lease

Ask for a list of the lifts, diagnostic tools and other equipment, and ask whether any item is financed or has a lien registered against it. Request the parts supplier accounts and their terms. Read the lease, and ask the owner to introduce you to the landlord early, since the landlord’s agreement to a new tenant may take time.

Technicians and your own advisers

Ask which technicians customers rely on and whether they plan to stay. Ask the owner how they would feel about a sale, and when and how they should be told. Without a broker, no one else manages the process, so hire your own lawyer and accountant before you sign anything. They can also review the draft agreement.