Normalize owner-master-tech labor
Why:Seller production labor can materially overstate SDE.
Check:Owner hours · technician pay rates · RO mix · diagnostic workload
critical
Earnings Quality
Acquidex IntelligenceQuarterly SMB acquisition research
Score a listing →Diligence
AUTO REPAIR · Q2 2026 · 4-item pre-LOI diligence checklist · 2 Critical · 2 High · 0 MediumMETHODOLOGY · Acquidex v1.0 · Anchored to AQX-IR-AUT-2026Q2 · Sample window Q2 2026 public market-rate sweepCRITICAL 01 · Normalize owner-master-tech labor · EARNINGS QUALITY pillarCRITICAL 02 · Verify technician and service advisor retention · TRANSFERABILITY pillarCRITICAL 03 · Inspect equipment and deferred capex · FUNDABILITY pillarLIVE · Pre-LOI verifications a sophisticated buyer should clear before signing an LOIAUTO REPAIR · Q2 2026 · 4-item pre-LOI diligence checklist · 2 Critical · 2 High · 0 MediumMETHODOLOGY · Acquidex v1.0 · Anchored to AQX-IR-AUT-2026Q2 · Sample window Q2 2026 public market-rate sweepCRITICAL 01 · Normalize owner-master-tech labor · EARNINGS QUALITY pillarCRITICAL 02 · Verify technician and service advisor retention · TRANSFERABILITY pillarCRITICAL 03 · Inspect equipment and deferred capex · FUNDABILITY pillarLIVE · Pre-LOI verifications a sophisticated buyer should clear before signing an LOI
Q2 2026 Auto Repair Pre-LOI Diligence
The complete auto repair pre-LOI diligence checklist.
Every Auto Repair acquisition verification a sophisticated buyer should clear before signing a letter of intent — grouped by category, tagged by pillar and severity, anchored to the Q2 2026 Auto Repair Atlas.
4
Total items
2
Critical · pre-LOI
2
High · post-LOI risk
0
Medium · diligence period
Severity legend
critical Will cause SBA fall-through or a deal break if missed. Verify before LOI.
high Post-LOI repricing risk. Verify in the diligence period or accept the haircut.
medium Diligence-period verification. Will not kill the deal but compounds working-capital and post-close risk.
01
Category 01 · 1 item
Labor normalization
02
Category 02 · 1 item
People
Verify technician and service advisor retention
Why:Shop throughput can fall immediately if key staff leave.
Check:Roster · tenure · comp plan · retention conversations · non-solicit terms
critical
Transferability
03
Category 03 · 1 item
Assets
Inspect equipment and deferred capex
Why:Immediate capex reduces fundable cash flow.
Check:Lift records · scan tools · alignment equipment · maintenance logs · subscriptions
high
Fundability
04
Category 04 · 1 item
Compliance
Review environmental records
Why:Used oil, solvents, and waste vendors can create lender friction.
Check:Waste manifests · vendor contracts · permits · insurance · lease use clause
high
Fundability