Tire Shop
Low-glamour rubber sales with service bays that keep customers coming back every few years
Tire shops sell replacement tires, wheel services, alignments, and basic undercar maintenance. BizBuySell rolls tire shops into the broader auto-repair category, where median sold revenue is $819,431 and median owner earnings are $182,133, while market commentary on tire-shop deals commonly lands around 2x to 3.5x SDE. The surprising angle is that a shop can look retail on the surface but behave like a recurring-maintenance business once fleet, dealership, and alignment work are layered in.
Avg Revenue
$950K
Profit Margin
17%
Acquisition Multiple
2.2x - 3.6x
Startup Cost
$100K - $500K
Difficulty
3/5
How It Works
Revenue comes from tire replacement, balancing, mounting, alignments, flat repairs, seasonal swaps, and related quick-service work. Better shops add commercial accounts, roadside partnerships, and used-tire value offerings to keep bays full and customer acquisition costs low.
Revenue Range
Real Acquisitions in This Category
SBA 7(a) change-of-ownership loans · NAICS 441320 · Tire Dealers
Deal Size Distribution
Deal Flow Over Time
Financing Profile
Recent Comparable Deals
| Closed | State | Loan | Implied deal | Jobs | Franchise |
|---|---|---|---|---|---|
| Jan 2022 | NE | $928K | $1.1M | 18 | — |
| Jan 2022 | NV | $1.1M | $1.3M | 2 | Big O Tires |
| Dec 2021 | MI | $881K | $1.0M | 9 | — |
| Dec 2021 | LA | $552K | $650K | 30 | Tire Pros |
| Dec 2021 | LA | $606K | $713K | 30 | Tire Pros |
| Sep 2021 | HI | $350K | $412K | 5 | — |
| Sep 2021 | WA | $2.5M | $3.0M | 12 | Big O Tires |
| Aug 2021 | CA | $740K | $871K | 26 | Big O Tires |
| Aug 2021 | TX | $1.2M | $1.4M | 7 | — |
| Aug 2021 | IN | $2.5M | $3.0M | 33 | Big O Tires |
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
- +Essential spend with recurring replacement cycles
- +Commercial and fleet accounts create repeat revenue
- +Cross-sells into brakes, alignments, and maintenance raise ticket size
- +Less diagnostic complexity than full mechanical repair shops
Cons
- -Inventory management can tie up cash
- -Margins are vulnerable if the business competes only on tire price
- -Bay utilization and technician throughput still matter a lot
Best For
Operators who want automotive exposure with simpler workflows than a full repair garage
Operating Costs
Major costs are tire inventory, technician wages, rent, tire machines and alignment equipment, disposal fees, and local advertising. Gross margin improves with service mix and commercial-account penetration.
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
Tire shops and wheel-service businesses typically list inside the auto-service category
Marketplace for tire retailers and service-bay businesses
Industry publication covering tire retail economics and trends
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
- 3/5
- Buy price
- $2.1M–$3.4M
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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