Auto Repair / Tire Supply / Quick Oil Change

Since vehicles became widely available, consumers have become increasingly reliant on vehicular transportation to adequately function in daily life. This dependency has been further represented in the auto repair maintenance and service industry market value as it's projected to reach $75 billion by 2026. According to the market intelligence and advisory firm Mordor Intelligence, the primary growth factors propelling this industry include the rise in age of the average vehicle on the road, increased mileage of those vehicles, in addition to an increase of used car sales. Even despite the reduced necessity for transportation due to the onset of COVID-19, the economic uncertainty has resulted in consumers choosing to repair their current vehicle instead of purchasing new.

The auto repair maintenance and service industry has proven to be steady year over year, which has translated over to the business resale market. Over the last 40 years, Sunbelt Business Brokers has transitioned literally hundreds of auto repair businesses. While much of our success can be attributed to the highly experienced and knowledgeable business intermediaries stationed in 140+ offices throughout the United States, Sunbelt Franchise Resales (SFR) has relationships with the some of the world's top automotive franchise groups to help educate their network of business owners on the selling process and key strategies for maximizing value and their business. As a result, this has given us keen insights into how to effectively market this type of business and has allowed us to play an integral role in helping owners achieve their succession goals.  

As of the conclusion of 2023, the marketplace remains an advantageous place for business owners to transition their business. Immediately following the onset of COVID-19 in March of 2020, the buyer pool for businesses increased dramatically due to historically low interest rates, high unemployment and low job satisfaction. Since 2022, however, rapid rates of inflation and interest rates spiking beyond even pre-pandemic levels left many business owners wondering if they could still earn maximum value for their business.

The simple answer remains "YES!"

Year-over-year, the business resale market has continued to demonstrate that buyers are interested in purchasing strong performing businesses regardless of economic conditions. BizBuySell, the largest online business-for-sale marketplace, published their market insights report at the conclusion of Q4 in 2023. Here's what they said:

                   "Businesses bought in 2023 showed stronger financials compared to the previous year,                             also exhibiting a U-shaped pattern with values surging in the 4th quarter. Median cash                               low grew 13% in the final quarter, finishing the year with a 4% annual gain, while median                           revenue gained 16% and 6% respectively. This activity underscores small business                                       resilience despite current economic conditions. It also suggests buyers are still willing to                             invest in great opportunities."

If you are an owner contemplating the sale of your business, it's never been more critical and beneficial to consult with someone who understands the marketplace, the selling process and how to appropriately value and market your business in order to maximize value.

Ready to explore selling your business? Contact us today for a free/no-obligation discussion and complimentary value range analysis!