Precision Auto Service
Anonymized composite of a real Main Street acquisition: a 20-year-old independent auto repair shop with three service bays, steady walk-in and fleet revenue, and a retiring owner-operator. Every number below was computed by the same engine that will analyze your deal — nothing is mocked up.
Deal Snapshot
- Industry
- Automotive Repair & Maintenance
- Location
- Midwest, USA
- Asking Price
- $1,500,000
- Implied Multiple
- 3.35x SDE
Owner Benefit (SDE)
$447,600
Adjusted EBITDA
$327,600
DSCR at asking price
0.70x
Gross Margin
47.6%
The verdict
Solid business — wrong price. At the $1,500,000 ask, DSCR is 0.70x, below the 1.25x lenders require. The cash flow supports a maximum price of about $840,599.
That gap is your negotiation anchor — or your reason to walk. This is exactly the conversation the analysis is built to arm you for, before you spend a dollar on advisors.
Financial Screening Score
Scores summarize the automated financial checks below. A score of 100 means these checks detected no flags; it does not verify the documents, establish that diligence is complete, or rule out acquisition risk. Review the assessment and missing evidence before deciding.
Critical Issues & Recommended Next Steps
- Low DSCR: Request a lower purchase price, larger down payment, or extended loan term to bring DSCR above the lender's minimum before submitting for financing.
Red Flags Detected
Low DSCR
criticalDSCR of 0.70x is below 1.0x (cannot service debt).
Category: Debt Service
Three-Year Trend
| Period | Revenue | Gross Profit | Gross Margin | Operating Income |
|---|---|---|---|---|
| FY 2022 | $1,520,000 | $708,000 | 46.6% | $236,600 |
| FY 2023 | $1,655,000 | $777,000 | 46.9% | $270,300 |
| FY 2024 | $1,810,000 | $862,000 | 47.6% | $318,700 |
Can This Deal Support SBA Financing?
- CFADS
- $140,700
- Annual Debt Service
- $200,857
- Max Supportable Loan
- $756,539
- Implied Max Price
- $840,599
Assumes an SBA 7(a)-style structure: 10% down, 8.5% rate, 10-year term, a 1.25x DSCR threshold, an $80,000 replacement owner salary, and a $25,000 annual CapEx reserve. Every assumption is editable on a real deal — and every formula is shown, step by step.
Valuation Range
SDE multiple approach (2.0x – 4.5x)
$895,200 – $2,014,200
Base: $1,342,800 at 3.0x
Adjusted EBITDA approach (3.0x – 6.5x)
$982,800 – $2,129,400
Base: $1,474,200 at 4.5x
Questions to Ask the Seller
The analysis surfaces what the financials can't answer — so you walk into the next call prepared.
- Walk through the fleet-account contracts: what share of revenue is under contract, and are they assignable at sale?
- Owner compensation was $120,000 in FY 2024 — what portion of the owner's duties will require a replacement hire versus transferring to the buyer?
- Provide the AR aging: how much of the $150,000 receivable balance is over 60 days?
- The equipment list shows $300,000 net book value — what is the age and condition of the lifts and alignment rack, and is any major replacement due?
- Confirm the lease terms: remaining term, renewal options, and whether the $60,000 annual rent is at market rate.
- Were there any one-time expenses in FY 2024 (legal, repairs, settlements) that should be normalized out of earnings?
Get this analysis for the deal on your desk
Upload the broker package and see your numbers in minutes — free to run, no credit card required. Pay only when you want the report.
Sample data is an anonymized composite. BuySideMetrics is a decision-support tool, not a CPA audit or tax, legal, or investment advice. Full disclaimer