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 How to Sell Your Auto Repair Shop in Texas (Step-by-Step guide)

  • Dustin Blackmon
  • Dec 6
  • 4 min read

If you’re a shop owner in Texas thinking about selling your auto repair business, you’re not alone. Thousands of shop owners across the state are evaluating retirement, burnout, health concerns, staffing challenges, or the desire to do something different after years in the bays.

Selling an auto repair shop is very different from selling a typical small business — and even more different than selling a building. There are lifts, tools, equipment, real estate considerations, SDE adjustments, buyer financing, SBA rules, and confidentiality issues that make these deals unique.

This guide walks you through exactly how to sell your auto repair shop in Texas, step-by-step, so you know what to expect and how to prepare for a successful sale.


Step 1: Decide If Now Is the Right Time to Sell

The first step is clarity.

Most shop owners decide to sell because of one of these reasons:

  • Retirement is coming soon

  • Health or physical limitations

  • Burnout after decades in the business

  • Staffing problems that never stop

  • Wanting more time with family

  • Ready to cash out and try something new

  • The real estate has appreciated significantly

  • A buyer approaches with a real offer

If any of these sound familiar, it’s worth at least having a conversation about your options.

Most owners wait too long — and the shop value drops as revenue or energy declines.


Step 2: Gather Your Financials

Serious buyers and lenders need clear financials.

Here’s what a Texas buyer or SBA lender will typically want:

  • Last 2–3 years of tax returns

  • Year-to-date Profit & Loss (P&L)

  • Equipment list

  • Payroll breakdown

  • Lease terms (if you rent)

  • Property tax info (if you own the real estate)

  • Any debt tied to the equipment or property

You do not need perfect books — most shops don’t have them. But you do need clarity.

A broker who understands auto shops will help clean up the story and identify add-backs to calculate SDE (Seller Discretionary Earnings) — the number buyers really pay for.


Step 3: Know What Your Shop Is Worth

This is where most shop owners guess… and guess wrong.

Automotive business valuation in Texas is based on:

  1. SDE (your true owner benefit)

  2. Quality of financials

  3. Type of shop (general repair, quick lube, tire, diesel, transmission, performance)

  4. Number of bays + equipment

  5. Skill level of existing staff

  6. Location & traffic count

  7. Whether real estate is included

  8. Add-backs and adjustments

  9. Demand from qualified buyers

Most auto repair shops sell for:

👉 2.0–3.0× SDE for business only👉 Business price + property price separately if real estate is included

An experienced auto shop broker will help determine a price that is realistic AND attractive to real buyers without leaving money on the table.


Step 4: Decide Whether to Sell the Business, the Real Estate, or Both

In Texas, you can:

  • Sell the business only (and lease the property)

  • Sell the business + property together

  • Sell the property only (rare, but happens)

  • Sell to a tenant buyer

Here’s the truth:

⭐ Shops that include the real estate sell faster and often for much higher total value.

Buyers LOVE owning the property because:

  • Predictable rent

  • Long-term security

  • Future expansion

  • SBA 7(a) financing works well for both business + real estate

If you own your property, selling both usually attracts stronger buyers.


Step 5: Keep the Sale Confidential

Your employees, customers, vendors, and competitors should not know the shop is for sale.

If word gets out:

  • Technicians may quit

  • Customers may switch shops

  • Vendors may adjust credit

  • The value of your shop can drop

A good broker will:

  • Market the shop without identifying details

  • Require NDAs before sharing financials

  • Control who sees the full profile

  • Protect your business during the sale

Confidentiality is one of the biggest advantages of using a professional.

Step 6: Market Your Shop to Qualified Buyers

Marketing an auto repair shop requires industry experience. Most buyers are:

  • Owner-operators

  • Multi-location shop owners

  • Investors

  • Franchise groups

  • SBA-prequalified buyers

  • Local technicians ready to step up

A strong Texas broker will:

  • Prepare a professional business profile

  • Highlight your strengths

  • Present the real numbers clearly

  • Generate buyer interest

  • Show your shop while protecting confidentiality

  • Filter out “tire kickers”

Step 7: Negotiate the Offer

A formal offer typically includes:

  • Purchase price

  • Down payment

  • SBA financing terms

  • Seller financing (optional)

  • Training period

  • Inventory

  • Equipment list

  • Non-compete

  • Closing timeline

This is where negotiation skill matters.

An automotive broker can help you:

  • Understand what’s normal

  • Push for better terms

  • Protect your interests

  • Get to the closing table faster

Step 8: Closing the Sale

Once you accept an offer, the buyer will enter:

  • Due diligence

  • SBA underwriting (if financing)

  • Property appraisal (if included)

  • Environmental checks (sometimes)

  • Final inventory count

  • Training transition plan

Then, you close. Your buyer takes over. You move on to the next chapter.

⭐ Final Thoughts

Selling your auto repair shop is a major decision — emotionally and financially.

You don’t need to figure it out alone.

A conversation can save you months of stress and help you understand what your shop is truly worth in today’s Texas market.


Call or Text

📞 210-857-8275📧 Dustin@rpmshopsales.com

Most shop owners text first. No pressure — just real answers

 
 
 

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