THE SHORT ANSWER
Value a collision shop using supported completed-job earnings and a defined scope of insurer/program rights, equipment and premises. Reconcile actual parts, materials, labor, sublet services and permanent estimating/management costs. Test remaining repairs and required investment separately. No universal collision-specific multiple is substantiated here, and general auto-repair figures do not independently establish a collision-shop appraisal.
Define earnings and the actual sale scope
SBA describes income, market and asset valuation approaches.
(SBA: closing or selling a business)Use actual matched completed transactions with a defined earnings measure, operating model, included equipment, premises and program rights. General automotive sales, asking listings and a fixed multiple are separate from evidence specific to a collision shop. If matched evidence is unavailable, identify the gap instead of labeling a generic range an industry average.
Separate completed/collected repairs from estimates, pending supplements and work in progress. Review actual insurer, fleet, dealer and direct-customer channels, agreements and proposed buyer conditions. A large referred-work total does not independently prove collection or uninterrupted future assignments.
Test a completed-repair contribution group
Trace actual jobs through approved scope, completed delivery, discounts, refunds, parts, labor, materials, sublet work and settlement. Record collection timing, rework and disputed balances separately.
| Hypothetical completed-repair group | Assumed amount | Boundary |
|---|---|---|
| Collected repair fees after refunds | 40,000 dollars | No unfinished repairs or customer deposits |
| Distinct parts and materials | 15,000 dollars | Not already deducted |
| Distinct repair labor | 12,000 dollars | Separate stated amount |
| Distinct sublet services | 3,000 dollars | Separate stated amount |
| After specified costs | 40,000 − 15,000 − 12,000 − 3,000 = 10,000 dollars | Before estimating, premises and other costs |
The 10,000-dollar remainder follows 30,000 dollars of specified costs. Estimating, supplement administration, management, premises, software, training, maintenance, insurance, administration, other duties, financing and taxes are excluded. This is not SDE, annual profit, a market margin or price.
Include permanent capability and required investment
Bridge accounts to the chosen measure with the earnings reconciliation. Include continuing parts, materials, technicians, sublet services, estimating, supplements, customer support and management. Review actual owner tasks and permanent replacement compensation through the coverage worksheet. Do not add back work that someone must continue or costs already excluded elsewhere.
EPA identifies paint-stripping/surface-coating emissions resources.
(EPA: Auto Body Rule resources)Have qualified advisers review actual activities, equipment, records, permissions and necessary changes. Assess included booth/frame/measuring/tool assets, title and condition, and actual in-house versus external service capability. Model supported investment and interruptions separately from recurring earnings; this page gives no repair or operating clearance.
Review agreements and unfinished work separately
Use the consent register for actual insurer/program, OEM/network, vendor, software and premises terms. Record proposed operator conditions, approvals, expiration, termination and continuing service costs. A relationship or qualification label does not independently establish sale transfer, future volume or permanent technician availability.
Allocate open repairs, customer vehicle custody, deposits, approved/unapproved supplements, parts, labor, sublet bills, receivables and complaint/warranty duties through the delivery guide. Compare supported continuing earnings, necessary investment and actual funded closing obligations. Avoid valuing estimates as completed profit or using a universal risk adjustment to replace findings.
Owner questions
What collision-shop multiple is verified here?
No universal collision-specific range is substantiated; obtain actual matched completed evidence with a defined earnings, rights and asset scope.
Is the 10,000-dollar example company profit?
It is only the balance after three assumed job costs, before estimating, management, premises and other costs.
Can open estimates be counted as collected earnings?
Review completion, actual approvals, costs, disputes, recognition and collections separately.
Sources and review scope
Source review completed . The sources below support the identified concepts or rules; they do not validate hypothetical amounts or a valuation of your business.
- SBA: closing or selling a business
Valuation approaches, sale agreements, assets and ownership transfer.
- EPA: Auto Body Rule resources
Official overview updated October 26, 2025, fully read October 10, 2026. Identifies paint-stripping/surface-coating emissions rule and training/notification resources. Brief transaction-review pointer only; linked full regulations, actual exemptions, permits, equipment/training and state/local conditions require separate qualified review. No individual shop clearance, certification transfer or technical repair/painting instruction.
Confirm tax, legal, accounting and lending applications with the relevant professionals. Historical market observations describe the stated period and reported sample.
This is educational material. Industry figures and program rules can change; check the original sources and your advisors before applying them to a transaction. Calculator scenarios are not appraisals, lending decisions, or offers.
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