Acquisition Underwriting Model — Auto Repair Edition

Most independent shops operate from leased premises, and the business is worthless without the location. If the landlord won't assign the lease, or the remaining term is short, you have no leverage and no deal. Check that before you spend a dollar on diligence. This model puts it first.

Ten linked tabs. You type in one of them.

Inputs, SDE Bridge, Sources and Uses, Debt Schedule, Projections, DSCR, Returns, Summary — plus an Industry Diligence tab built for this trade.

WHAT'S SPECIFIC TO AUTO REPAIR

A rent-to-market add-back line that actually matters here, because seller-owned buildings with below-market rent inflate SDE in a way lenders will strike. Capex set for diagnostic and alignment equipment, which obsoletes on a five-to-seven year cycle faster than buyers model. Add-back lines for owner parts purchases and floor plan interest. A worked $925K example at 2.85x SDE clearing 1.48x DSCR.

THE DILIGENCE TAB

Ten items to verify. Lease remaining term, renewal options and assignment — first, before anything else. Rent as a percentage of revenue against market. Technician count, ASE certifications and tenure, because a two-tech shop losing one tech loses half its capacity. Effective labour rate against local market. Car count and average repair order over 24 months, separating price increases from real volume. Parts gross margin and whether supplier rebates transfer. Environmental exposure from waste oil, solvents and underground tanks, where contamination liability can exceed the purchase price. Comeback rate.

THE SBA RULES, BUILT IN

The 10% minimum equity injection, the full-standby seller note rule, correct guaranty fee tiering, three pass/fail tests, and the maximum price the cash flow supports.

WHO IT'S FOR

Buyers acquiring independent auto repair and service shops, roughly $400K to $3M, financed with SBA 7(a).

WHAT IT ISN'T

A financial model, not advice. Not a quality of earnings report, not a certified valuation, not tax or legal counsel. Sector multiple ranges are rules of thumb, not market data. Rates current to November 2026 — confirm with your lender.

FORMAT

Excel (.xlsx). Instant download. Arrives with a fully worked example deal.