Business Valuation by Industry
Auto Repair Shop Example & Industry Categories
Auto Repair Shops (Canada)
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.
Valuation Process
- Calculate the net proceeds in your balance sheet over and above liabilities.
- Apply the Eric Jordan “25 Factors Affecting Business Valuation” methodology to find the value of intangible assets.
- Estimate normalized net income and assign a multiple from the “25 Factors.”
- Conduct a fair market appraisal on the tools and equipment in a modern repair facility.
- Determine the value of leasehold improvements.
- Complete a 5 Senses Inspection Report to support the valuation.
1. 5 Senses Inspection Summary
- Sight: Bays and equipment functional but show moderate wear. Lighting uneven; signage worn.
- Sound: Normal operation noise; air compressors slightly loud.
- Smell: Typical automotive odours present; ventilation could be improved.
- Touch: Surfaces greasy; bay doors stiff and require lubrication.
- Taste: Not applicable.
Condition: Fair to Good – Functional, with some areas requiring upgrades or maintenance.
2. Equipment Valuation
| 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 |
Total Equipment Value: Low End: $57,300 | High End: $173,100
3. Leasehold Improvements Valuation
| 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 |
Total Leasehold Improvements Value: Low End: $71,500 | High End: $163,500
4. Overall Asset Valuation
| 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.
Why Experience Matters
Relevant ownership and operational experience—typically 10–20 years—is essential for determining accurate valuations. Business valuation is both an art and a science that requires hands-on knowledge of operations, not just accounting expertise.
Additional Industry Examples
The list below will become available soon.
- 3D Printing Studios
- Appliance Repair Services
- Audio Recording Studio Calgary
- Auto Body and Collision Repair Shops
- Auto Detailing Services
- Bakery and Pastry Kitchens Regina
- Bicycle Repair and Retail Shops
- Boat and Marine Repair Services
- Brewpubs and Microbreweries
- Catering Companies with Full-Service Kitchens Saskatoon
- Commercial Cleaning Services (Carpet Cleaning) Red Deer
- Commercial Printing and Copy Centres (Toronto)
- Commercial Window Cleaning Services
- Construction Contracting Business Edmonton
- Custom Jewelry Manufacturing
- Dental Clinics
- Drone Photography and Survey Services
- Event Equipment Rentals
- HVAC Repair and Installation Services Ottawa
- Landscaping and Lawn Care Services
- Medical and Aesthetic Spas
- Metal Fabrication Shops
- Pet Grooming Salons
- Photography Studios
- Plumbing Services Winnipeg
- Restaurant and Food Truck Businesses Kelowna
- Sign-Making and Graphics Shops
- Small Gym or Fitness Studio
- Solar Panel Installation Services
- Tattoo and Piercing Studios
- Tree Trimming and Removal Services
- Vancouver Photography Studio
- Woodworking and Cabinetry Shops
Pricing
Obtain a professional business valuation in Canada, priced between $1,500 and $15,000.
This service supports business sales, purchases, partnership disputes, share value determination, and tax-related needs (CRA compliance, Section 86 estate freezes, Section 85 rollovers). It also assists in divorce settlements with valuations aligned with the Canadian Income Tax Act, including intangible assets.
Contact
Eric Jordan, CPPA
Email: pindotca@gmail.com