Auto Repair Shop Acquisition & SBA Underwriting Model

Description
The sign on the wall says $140 an hour. The bank funds $118. That gap is $184,410 of purchase price. A lender-ready acquisition-underwriting model for buying a single independent auto repair shop with an SBA 7(a) loan. The posted door rate is not the effective labor rate: diagnostics get given away, discounts and comebacks bleed the ticket, and hours go unbilled. The shop captures about 84% of its door rate, and the bank underwrites the effective rate, not the sign.

What it does: a billed-hour x effective-labor-rate (ELR) capture engine (technician FTE x available hours x productivity x efficiency = billed hours, times the ELR = labor revenue), a parts-to-labor gross-profit matrix, and a bay/technician capacity cross-check; two prices side by side - the door-rate pro-forma price ($773,469) next to the real ELR-based price ($589,059), overpay avoided $184,410 (+31.3%), and the DSCR at each (1.04x vs 1.35x); an owner-technician / service-advisor replacement ($75,000); the DSCR true 1.35x vs naive 2.65x; a technician-shortage plus deferred-maintenance down-case at 0.51x (TechForce: about 20,780 techs short a year, the pipeline covers ~71%); and an explicit equipment reserve. 11 Excel tabs (Google-Sheets safe) plus a PDF guide. The first acquisition-underwriting model for auto repair. Educational planning tool - not financial, lending or legal advice.