Two auto repair shops sold together, BC: first read
Source: Business Finders Canada listing MLS 1542 (asset sale), read 2026-10-27. Listing figures are the seller's.
Two auto repair businesses, a transmission shop and a brake and muffler shop, offered together in British Columbia as an asset sale at $495,000, with reported annual sales of $944,987, cash flow of $233,079 and inventory valued at $500,000 (listing figures). The listing describes an extensive inventory included in the sale, low competition and an established location; the building lease is to be negotiated at the time of offer; financial information is released under an NDA; last updated 2025-11-28.
First read: the asking price is 2.1x the stated cash flow, and the cash flow is 25% of sales, which is high for auto repair and is almost certainly before any wage for the owner. At 20% buyer equity, a 15% vendor take-back and a 65% term loan, debt service would run about $77,000 a year, which the listed cash flow covers about 3.0 times; at 30% lower cash flow coverage is still about 2.1x. The pressure points are elsewhere. Inventory listed at about the full asking price means the price is mostly parts on shelves, so what those parts are worth at cost, and how fast they turn, matters more than goodwill. And with no lease in place, two shops' location is still an open term.
The three things a buyer should check first
- What the $233,079 includes: the owner's own wage and hours, and whether a licensed technician or manager would need to be hired for each shop.
- A dated inventory count at cost with ageing, and how much of the $500,000 is slow or obsolete transmission stock.
- The proposed lease: rent, term, renewals and environmental obligations on an automotive site, agreed before the price is final.
A Deal Risk Screen on this listing would rebuild the earnings, score the four risk pillars, set out the price the cash flow supports at a stated coverage, and give the five questions to ask before an LOI. Two sample screens are on the samples section of the home page.
This note is general information from public listing figures, not advice on this purchase. Deal Diligence has no connection to the seller, the broker or the business.