Auto Repair Shops: Equipped with hydraulic lifts, diagnostic tools, and specialized repair equipment for servicing vehicles.
This is an asset valuation example for auto repair shop and vehicle maintenance services. A full business valuation can be added.
The purpose could be for sale purposes, financing purposes, divorce, partnership disputes, tax, or other purposes.
First, we calculate the net proceeds in your balance sheet over and above liabilities.
Then we follow the Eric Jordan “25 Factors Affecting Business Valuation” methodology to find the value of the intangible assets.
Next, we estimate the normalized net income of the business and assign a multiple from the “25 Factors.”
We also conduct a fair market appraisal on the tools and equipment found in a modern repair facility.
We determine the value of the leasehold improvements, if applicable.
We complete a 5 Senses Inspection Report to support the estimates below:
This report combines the valuation of equipment and leasehold improvements with insights from the 5 Senses Inspection Report, ensuring a detailed and accurate appraisal.
Fair to Good – Functional, with some areas requiring upgrades or improved maintenance.
| Category | Quantity | Depreciated Value (Range) |
|---|---|---|
| Hydraulic Lifts | 3 | $9,000–$27,000 |
| Wheel Balancer | 1 | $3,000–$4,500 |
| Tire Changer | 1 | $2,000–$4,000 |
| Diagnostic Tools (3 units) | 3 | $5,400–$27,000 |
| Alignment Machine | 1 | $12,000–$24,000 |
| Air Compressors | 2 | $2,400–$7,200 |
| Brake Lathe | 1 | $4,200–$9,000 |
| Oil Change Equipment | 3 | $3,600–$9,000 |
| Cooling System Service Equipment | 1 | $1,500–$3,600 |
| Battery Testers & Chargers | 2 | $600–$2,400 |
| Workbenches & Tool Storage | 3 | $5,400–$18,000 |
| Hand Tools | N/A | $6,000–$30,000 |
| Exhaust Extraction System | 1 | $1,800–$6,000 |
| Parts Washer | 1 | $900–$2,400 |
| Category | Square Footage | Depreciated Value (Range) |
|---|---|---|
| Flooring (Epoxy Coating) | 1,000–1,500 sq. ft. | $9,000–$22,500 |
| Bay Doors (3 total) | N/A | $7,500–$15,000 |
| Lighting | N/A | $3,000–$8,000 |
| Ventilation & Exhaust | N/A | $10,000–$20,000 |
| Electrical Upgrades | N/A | $5,000–$15,000 |
| Plumbing & Drains | N/A | $10,000–$25,000 |
| HVAC System | N/A | $10,000–$20,000 |
| Office & Reception Area | 300–400 sq. ft. | $5,000–$10,000 |
| Restrooms | N/A | $5,000–$8,000 |
| Signage | N/A | $2,000–$5,000 |
| Parking Lot Improvements | N/A | $5,000–$15,000 |
| Category | Low-End Estimate | High-End Estimate |
|---|---|---|
| Equipment | $57,300 | $173,100 |
| Leasehold Improvements | $71,500 | $163,500 |
| Total Asset Value | $128,800 | $336,600 |
The three-bay facility has a current asset value range of $128,800–$336,600, based on equipment and leasehold improvements.
This is where relevant experience owning and operating a private business for 10 or 20 years is essential for a business valuator to find the right value estimate for your equipment assets and leasehold improvements.
You would not allow someone without 10 to 20 years of hands-on, relevant art restoration experience to restore a million-dollar painting owned by your family. The same holds true for your private business. Accounting experience is not business experience. Commercial pilots and head surgeons must have “hands-on experience”—and so must your business valuator.
Depending on the purpose, we may need to scale this up to a full business valuation report by considering the Eric Jordan “25 Factors Affecting Business Valuation” methodology on top of the equipment and leasehold improvement appraisal.
We would be happy to help you.
Obtain a professional business valuation in Canada, priced between $1,500 and $15,000.
This service is essential for business sales, purchases, partnership disputes, share value determination, and tax-related needs such as CRA compliance, Section 86 estate freezes, and Section 85 rollovers. It also supports divorce settlements with accurate appraisals in line with the Canadian Income Tax Act, including full consideration of all intangible assets.