It’s no secret that most automotive repair shop owners are closer to retirement age than not.
Eventually, you’re going to want to exit. But how do you do it and do it well?
Owning a repair shop alone isn’t easy, explained Matt DiFrancesco, principal and financial technician for automotive repair professionals at High Lift Financial. And setting it up to be an attractive buy isn’t either.
And it’s harder when the owner is someone who rose through the ranks, was a great tech and took over the business.
“But from a business standpoint, they’re sometimes they’re successful in spite of themselves,” DiFrancesco told host Peter Bulmer in this episode of Auto Service World Conversations.
He told the story of one of his clients whose goal early in his career was to move as many cars as he could through his shop.
“And that’s how they increased revenue. And I find a lot of times as I’m doing a deeper dive into their financial analysis, a lot of these owners have good revenue, but their free cash flow is not so good,” he explained. “And so we spend a lot of time trying to build value in the business because the shop is typically their biggest asset that they have.”