Auto Body & Collision Repair
Insurance-paid repair volume with ugly operations and surprisingly durable demand
Collision shops repair wrecked vehicles, handle paint work, and coordinate with insurers after accidents. BizBuySell's auto-repair benchmarks, which explicitly include auto body shops, show median revenue of $819,431, median owner earnings of $182,133, and average earnings multiples of 2.82x. The surprising angle is that insurers and dealer referrals can make a good shop feel closer to a local claims-processing machine than a typical retail garage.
Avg Revenue
$1.2M
Profit Margin
18%
Acquisition Multiple
2.5x - 4.2x
Startup Cost
$200K - $1.2M
Difficulty
4/5
How It Works
Customers arrive through insurer direct-repair programs, dealer referrals, fleets, and local word of mouth. The shop estimates damage, orders parts, performs body and paint work, and gets paid when vehicles are delivered. Throughput, labor efficiency, paint-booth utilization, and insurer relationships drive returns.
Revenue Range
Real Acquisitions in This Category
SBA 7(a) change-of-ownership loans · NAICS 811121 · Automotive Body, Paint, and Interior Repair and Maintenance
Deal Size Distribution
Deal Flow Over Time
Financing Profile
Recent Comparable Deals
| Closed | State | Loan | Implied deal | Jobs | Franchise |
|---|---|---|---|---|---|
| Dec 2025 | OK | $225K | $265K | 4 | — |
| Dec 2025 | NC | $150K | $177K | 5 | — |
| Dec 2025 | NC | $2.2M | $2.6M | 5 | — |
| Dec 2025 | CT | $285K | $336K | 4 | — |
| Dec 2025 | MD | $435K | $512K | 7 | Maaco |
| Dec 2025 | OH | $1.3M | $1.5M | 8 | — |
| Dec 2025 | OH | $75K | $88K | 8 | — |
| Nov 2025 | TX | $1.3M | $1.5M | 14 | — |
| Nov 2025 | NV | $940K | $1.1M | 9 | — |
| Sep 2025 | MD | $370K | $435K | 8 | — |
Source: SBA 7(a) FOIA dataset, filtered to acquisitions (loans where business age is "Change of Ownership"). Implied deal size assumes an 85% loan-to-purchase ratio, a common SBA change-of-ownership structure. Charge-off rate shown only when 10+ loans have resolved (paid in full or charged off). Interest rates reflect last 24 months only. Actual deal values vary with equity injections, seller financing, and working capital terms.
Pros
- +Large ticket sizes and insurer-backed demand
- +Referral relationships can create sticky lead flow
- +Equipment-heavy moat makes fly-by-night competition harder
- +Consolidators and MSOs create exit optionality for strong shops
Cons
- -Labor management and technician recruiting are hard
- -Equipment, booths, and environmental compliance are expensive
- -Margins can get squeezed by insurer pricing pressure and parts delays
Best For
Operators who can manage skilled technicians, insurer relationships, and shop throughput
Operating Costs
Biggest costs are technician labor, paint and materials, parts procurement, facility rent, frame and booth equipment, hazardous-waste compliance, and insurance. The best shops protect gross profit through disciplined estimating and cycle-time control.
SBA Financing Estimator
Adjust the deal — see if it cash flows after debt service
Estimates only. Excludes owner compensation, capex, working capital draws, and taxes. Margin assumes average occupancy and volume. Actual SBA terms vary by lender and borrower profile.
Where to Buy
Collision centers and body shops commonly list under the broader auto-service category
Listings for body shops, mechanic shops, and specialty automotive service businesses
Collision-repair industry education and standards resources
Acquisition Score
Scores margin (30), entry multiple (25), SBA market depth (20), category risk (15), and deal momentum (10). Higher = better acquisition candidate.
Quick Facts
- Category
- physical
- Difficulty
- 4/5
- Buy price
- $3.0M–$5.0M
Buyer's Toolkit
Essential tools to get started
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Largest business-for-sale marketplace in the US
SBA loans and business acquisition financing — get funded fast
ROBS financing — use retirement funds to buy a business tax-free
Bookkeeping for small business owners — hands-off financials
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