The numbers
As stated by the listing on October 5, 2026.
- Asking price
- $1,350,000
- SDE
- $387,000
- Gross revenue
- $1,958,465
- Multiple
- 3.49x
- Established
- 2000
Why we like it
A car that has been hit does not repair itself, and the bill usually goes to an auto insurer, which makes a collision shop as much a channel for carriers as a counter for drivers. The customer often does not choose the shop on price. An adjuster writes the estimate, the shop and the carrier agree labor rates and parts against it, and the insurer also pays a rental car for every day the vehicle sits in the bay. That makes cycle time a large part of what the shop sells, since a repair that finishes sooner costs the carrier less in rental than one that drags on. Work reaches a shop in Shelby, which has operated since 2000, through three doors: carrier referrals, drivers who pick the shop themselves, and commercial or rental accounts that send vehicles in batches. The first door is steered, and the other two have to be won one car at a time. Newer vehicles add a step once the metal and paint are done, because cameras and radar sensors behind the windshield and bumper often need recalibrating, and a shop that can do that in house keeps the job rather than sending it to a dealer. Output is set by how many cars the existing bays and technicians can finish, so growth means filling the same space faster. The second engine is whichever of the three doors the current owner leans on most, and the listing does not say which that is.
No personal licence needed
Running a collision shop does not, as far as I know, require a state licence in North Carolina that the buyer must hold personally. The state does not issue a general licence to operate a body shop, so there is no certificate that transfers or that a buyer must obtain. Two things attach to the business rather than to the owner: an air quality permit if the shop sprays solvent-based coatings in a booth, and state inspection licences only if the shop also performs safety inspections, which a body shop usually does not. Carrier direct-repair agreements and manufacturer repair certifications are commercial credentials, not licences, and a buyer without a technical background can hire an estimator or shop manager. This status rests on general knowledge of North Carolina rules rather than the listing, so confirm with the state environmental and motor vehicle agencies before relying on it.
What worries us
- Carrier relationships may sit with the ownerMuch of a shop's insurance volume depends on direct-repair agreements and personal relationships with adjusters, and those agreements may be held by the owner rather than the company. If the seller is the face of those relationships, a buyer can inherit a book that does not transfer on the same terms, and the seller's earnings figure is their own unaudited claim, not a verified number.
- Technician loss slows the baysExperienced painters and frame technicians are hard to replace, and many shops pay on flat-rate hours, so a lead tech or painter who leaves takes throughput with them. Cycle time is what carriers reward with more work, so a slower bay can quietly cost referrals before the decline shows up in the numbers.
- Real estate and equipment carry the riskAround $1,000,000 of the price is real estate, and the value is a seller's figure rather than one I have seen supported by an appraisal. Paint booths and frame machines wear out, and a booth replacement is a large capital bill. A buyer who takes over a shop that has sprayed for years also takes on whatever environmental history comes with the site.
The callSuits an operator who can work with adjusters and technicians from day one, not an absentee buyer who expects insurers and techs to run without them.
Our calculations
Our standard SBA 7(a) acquisition structure applied to the asking price. Assumptions below.
Sources
| SBA 7(a) loan | $1,281,730 |
| Seller standby note | $71,208 |
| Buyer cash at close | $71,207 |
| Total sources | $1,424,145 |
Uses
| Purchase price | $1,350,000 |
| Closing costs (est.) | $40,500 |
| SBA guaranty fee | $33,645 |
| Total project | $1,424,145 |
- Monthly payment
- $11,548
- Annual debt service
- $138,572
- DSCR
- 1.82xSTRONG
- Injection check
- Meets 10% ($142,415 against $142,415 required)
- Closing costs estimated at 3% of asking price
- Owner salary of $120,000, loaded
- Rate of Prime + 2.25% = 9.25%
- 21-year term, fully amortizing
- Injection split half cash, half seller standby note
How we would go about buying it
The order matters. Every step below is free until the last one, and each is a chance to walk away before it costs you anything.
- 1
Call the broker, not the bank
The listing is brokered, so the broker is the gate. Ask for the CIM and the last three years of tax returns, and expect to sign an NDA first. Do this before you talk to a lender: no lender will size a loan without the numbers, and the broker will not release them to a lender you have not engaged.
Open the listing - 2
Ask these before you spend anything
Specific to this business, from our read of the listing. The answers decide whether the numbers above survive contact.
- Split the last three years of gross revenue into carrier direct-repair work, independent driver claims, and commercial or rental accounts, and name each carrier agreement in force. Are any of those agreements in the owner's personal name, and do they assign on a sale or need the carrier's consent?
- What are average cycle time and supplement counts by carrier over the last 24 months, and how many repairs were held up by parts delays or second estimates? Those figures show whether the bays are as fast as the seller's earnings assume.
- Who are the lead painter, frame technician and estimator, how long has each been here, how are they paid, and will each sign a retention or non-solicit agreement that starts at closing?
- What are the make, age and last certification or calibration date of the paint booth, frame machine and any sensor calibration equipment, and does the shop hold a current air permit for its spray operations from the state environmental agency?
- Is the around $1,000,000 real estate value from an independent appraisal, a tax assessment or the seller's own estimate, and has a Phase I environmental site assessment ever been done on the property?
- 3
Take it to lenders who do this size
Talk to more than one. Rate is the least of it: the lender who has done fifty of these in North Carolina will close, and the one who has done two will waste your quarter. Below are the lenders whose typical deal size actually fits this one.
- 4
Structure the offer around the coverage
Our structure clears the floor at 1.82x, and a lender will run its own version with its own add-backs. If the earnings come back lower than stated, the price has to come down or the seller note has to grow. Model both before you make an offer.
Model it yourself
Who we would call
Active North Carolina acquisition lenders whose typical deal size fits this one.
- Live Oak Banking Company
68 loans in NCmedian $550,000median rate 9.25%~20 days to first disbursement
- Fidelity Bank
20 loans in NCmedian $1,052,900median rate 9.75%~20 days to first disbursement
- First Bank
19 loans in NCmedian $868,500median rate 10.00%~35 days to first disbursement
Loan counts and medians are that lender’s change-of-ownership loans in North Carolina, FY2025 to FY2026 Q3. Funding speed is the lender’s national median from approval to first disbursement. Names link to our data profile for each lender.
The fine print
The statements this write-up makes about the trade and its rules, as opposed to the figures, were checked against public sources on October 5, 2026. 5 claims were checked.
Worth verifying yourself
These are industry statements we could not confirm against an authoritative public source. They are not contradicted by anything we found, but treat them as leads to check rather than settled facts.
- Most collision repairs in the United States are paid by an at-fault driver's insurer or the claimant's own insurer.
- Many collision customers are steered to a repair shop by their insurer or adjuster rather than choosing one on price.
- Insurance repair estimates are commonly written in estimating software used by both carriers and shops, and labor rates and parts are negotiated against that estimate.
- Dealers and independent calibration vendors perform advanced driver assistance system recalibration as well as collision shops.
- Solvent-based automotive refinishing in spray booths can require an air permit from the state environmental agency, and federal rules for autobody refinishing may apply to some shops.
- Many collision shops pay technicians on a flat-rate, book-hours basis.
- Direct-repair agreements with carriers may be held by the owner or the company, and whether they assign on a sale depends on the contract terms.
Run your own numbers
The deal analyzer models price, seller note, equity injection, and DSCR under current SBA terms, with every assumption adjustable.
Open the deal analyzerListing facts as stated by the listing on October 5, 2026, not independently verified. Structure, payment, DSCR, and injection figures are our own computation under the assumptions above, using the Prime rate as of September 28, 2026. Lender shortlist from the SBA 7(a) FOIA file, FY2025 to FY2026 Q3, as of June 30, 2026. Methodology. See an error? Email us and we will correct it.