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 partnered with the some of the world's top automotive franchise groups including Driven Brands (Meineke, Maaco, 1-800-Radiator, etc.) and TBC Corporation (Midas, Big O Tires, etc.) to help educate their network of business owners on maximizing value and the business selling process. 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 Third Quarter 2022, the marketplace remains an advantageous place for business owners to transition their business. Since 2020, the buyer pool for businesses has increased dramatically due to historically low interest rates, high unemployment and low job satisfaction. However, there have been some early indicators signaling a shift in the marketplace. With rapid rates of inflation and interest rates spiking beyond even pre-pandemic levels, the buyer pool is projected to level off as many of the incentives to purchase an existing business disappear. Seller Financing has emerged as an alternative to traditional bank financing and remains an attractive selling point for buyers.
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!