Denver Auto, Light Truck, Repair and Replace Shop

This company sold in March of 2023 to a buyer who left a corporate engineering job.  He was unable to commit to working in the business full time, had no automotive experience, lost a key employee early on, and lost revenue from a crackdown on catalytic converter thefts.  The trailing 12 months revenues to July 31st, 2025, were 155K with negative adjusted earnings of 58K which compares to 2022’s 716K in revenues with 264K in earnings.  The real estate is for sale also and is contingent on the sale of the business.  The Seller paid 645K for the business in March of 2023 and 670K for the real estate.  On Oct 1st, he lowered the price to 175K for the business and 750K for the real estate mostly because he spent over 100K in repairs, new lighting, and security cameras. 

The Seller believes that an experienced automotive repair Buyer will know what he/she can do with the shop, but he has no choice but to give it up because he wants to retire.   The business has 90K in assets and has done very well in the past and with a new owner should be able to do so again.  We have decided to offer the business for 175K which is less than 30% of what he paid 3 years ago.  As for the real estate, he has added value by spending over 100K on the building and is offering it for 750K which we believe it will appraise for. 

This business has proven how valuable its high profile, corner location on two heavy traffic 4 lane streets.  The current business is over 80% under-utilized which makes it attractive.  Keep in mind that it is doing 155K in revenue over the last year vs 716K in 2022 and in 2022, the previous owners were only using 2 of the 3 lifts.  This shop should be able to do 1.1M or more in revenue just from the bays.   The lot is huge and could be a great source of other revenues like tires, etc. 

This is not a franchise.  The business was started in 1976.   The shop currently does 70% basic exhaust repairs, 25% mufflers, and 5% catalytic converters.  They are an Air Care Colorado Registered Repair Facility.  They use 2 of the 3 lifts but neither one full time.  They do 80% scheduled work by appointment and 20% based on walk ins or call ins the same day.  They do have a couple of dealerships, Westminster Schools, and are the go to exhaust shop for several car repair/body shops.  The business has started picking up again in the summer of 2025 for the first time in the last 3 years.  The shop was doing mostly catalytic converters when he bought it 3 years ago.  At its peak before that, the shop used to do brakes, shocks struts, and custom exhaust work in addition to mufflers and catalytic converters. 

The building sits on a .361-acre lot, has 3 large bays with lifts but limited storage. This property is also for sale contingent with the sale of the business.  The new owner will most likely want to add on several services like brakes, shocks, struts, and custom exhaust services, but might also consider oil changes, windshield wipers, filters/belts, headlight restoration/replacement/refurbishment, batteries, tires, and fluid checks/flushes.

The buyer will get at least 90K in current value of equipment, tools, lifts, a new air compressor, pipe bender, etc. The shop is currently open Tuesday-Friday 8:30AM to 4PM and Monday and Sat from 8AM to Noon the owner works 40 hours per week but only 10 or so of those are helping his tech with repairs.  

 The business has a 4.3 Star Rating on Google with over 230 reviews which is good for a car repair shop, and they also have an A+ rating by the BBB.  This owner and the owners before have never asked for reviews.  The websites age, 4.3 Google star rating which is above normal for an auto repair shop, number of reviews, and both the size and location of the shop all add value.   

The sales price is only 175K plus a small amount for inventory which is just a guess on what seems reasonable considering everything.  Obviously, only the real estate will be bankable because the business is currently losing money.