Precision Auto Service
Fictional illustration of a Main Street acquisition: a 20-year-old independent auto repair shop with three service bays, steady walk-in and fleet revenue, and a retiring owner-operator.
Fictional, incomplete example. No real customer documents, verified source support or independent accountant review are supplied. The sample and metric guides use the same calculation engine and source-coverage guards as the private workspace.
Fictional Deal Snapshot
- Industry
- Automotive Repair & Maintenance
- Location
- Midwest, USA
- Asking price assumption
- $1,500,000
Revenue
$1,810,000
Gross profit
$862,000
Gross margin
47.6%
Modeled annual debt service
$200,857
Evidence status: incomplete
A missing input is not zero. Financial screening scores, completeness ratings and valuation are unavailable for this older fixture. Revenue and direct costs support the figures above; they do not establish normalized earnings or debt coverage.
- SDE needs an explicit deducted-income-tax figure for FY 2024; this fixture does not report it.
- Operating income and EBITDA need complete expense categories, including vehicle, professional fees and other operating expenses.
- CFADS and DSCR also need two complete working-capital snapshots. This fixture supplies one partial year-end balance sheet, omitting prepaids and short-term debt.
- Obtain and map the missing source figures, confirm add-back support and review assumptions before recalculating. No original financial documents or verified adjustment support are supplied here.
For an editable earnings bridge and buyer handoff, try the fictional cleaning screener. It demonstrates screening arithmetic and decisions; it does not validate extraction or the complete paid report.
Earnings and financing readiness · FY 2024
- Operating income
- Not available
- EBITDA
- Not available
- Adjusted EBITDA
- Not available
- Owner benefit (SDE)
- Not available
- CFADS
- Not available
- DSCR
- Not available
- Net working capital
- Not available
- Valuation
- Not available
Loan assumptions: 10.0% down, 8.5% interest, 10 years. Operating assumptions: $80,000 replacement owner salary, $25,000 annual CapEx reserve and 25.0% effective tax rate. Modeled debt service alone does not establish financing eligibility or lender approval.
Three-Year Trend · supported fictional figures
| Period | Revenue | Gross profit | Gross margin | Operating income |
|---|---|---|---|---|
| FY 2022 | $1,520,000 | $708,000 | 46.6% | Not available |
| FY 2023 | $1,655,000 | $777,000 | 46.9% | Not available |
| FY 2024 | $1,810,000 | $862,000 | 47.6% | Not available |
Operating income remains unavailable in each year because expense coverage is incomplete. Guide examples use this same fixture and presentation.
Questions to Ask the Seller
- Walk through the fleet-account contracts: what share of revenue is under contract, and are they assignable at sale?
- Owner compensation was $120,000 in FY 2024 — what portion of the owner's duties will require a replacement hire versus transferring to the buyer?
- Provide the AR aging: how much of the $150,000 receivable balance is over 60 days?
- The equipment list shows $300,000 net book value — what is the age and condition of the lifts and alignment rack, and is any major replacement due?
- Confirm the lease terms: remaining term, renewal options, and whether the $60,000 annual rent is at market rate.
- Were there any one-time expenses in FY 2024 (legal, repairs, settlements) that should be normalized out of earnings?
Inspect an earnings bridge and open questions
The fictional cleaning walkthrough shows buyer-entered screening and a handoff. Document-based reports require a paid plan and supported source inputs.
Fictional educational example. Decision support, not a CPA audit, assurance engagement or tax, legal or investment advice. Full disclaimer