Positioning your shop for sale, with Tekmetric’s Sunil Patel

As private equity firms expand their reach into the auto repair industry, shop owners must be intentional about making their businesses appealing to potential buyers, according to Sunil Patel, founder of Tekmetric.

In this episode of Auto Service World Conversations, Patel explains why private equity is increasingly interested in acquiring repair shops that are having trouble finding an internal buyer, a neighbouring shop or someone in the family to take over.

“Lack of having a succession plan from parent to child is something that’s quite common, and that’s an opportunity that private equity takes,” Patel said, a former shop owner who ended up selling internally to focus fully on the Tekmetric business.

To make their businesses attractive, he advised shop owners to prioritize financial transparency and operational efficiency. Shops relying on pen-and-paper records often struggle to appeal to investors.

“Clean accounting. Clean books is super important for acquisition [and] to be a good acquisition target,” Patel emphasized.

Technology plays a crucial role in this preparation, he added. Point-of-sale systems help shops document repairs, track customer histories and generate detailed reports — key data that investors assess during acquisitions.

But more than just numbers are important to a shop’s sale. Patel highlighted the significance of building strong customer relationships and ensuring a well-managed team. He suggests that owners implement standardized processes and focus on providing an excellent customer experience.

“Some of the best shops try to learn their customer very deeply,” he said. “Imagine walking into a repair shop and the repair shop automatically greets you by your first name or last name, and then automatically knows your drink preference.”

As the industry continues evolving, Patel advises shop owners to explore multiple offers before deciding on a buyer. “Don’t take the first number [you get],” he cautioned. “Get some numbers from other people.”

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