Acquiring MindsJune 3, 2024

Rolling Up EBITDA and Rents with Auto Repair Shops

with Stephen Quinlan & Paul Westhart · GNR Diesel

Listen to Episode →

LenderHawk analysis. Not affiliated with or endorsed by Acquiring Minds.

The Deal

Business

GNR Diesel

Industry

Auto Repair (Light Duty Diesel)

State

Purchase Price

$3.0M

Multiple (REVENUE)

3.0x

Year

2023

Financing

SBA 504

Revenue at Purchase

$2.5M

LTV at Close

90%

Deal Source

other

Financing Structure

SBA 504

Seller Note

Strategic Rationale

Unlocking real estate value via 504 Green financing while securing the operation via creative seller debt.

Post-Acquisition Performance

Underwent rocky transition due to owner involvement, now stabilized with new foreman.

Key Takeaways

1Larger platform acquisitions with better management in place and more technicians reduce concentration risk versus smaller shops with few employees.
2Inclusion of real estate in SBA 7A financing uses valuable borrowing capacity inefficiently; separate 504 green loans for real estate preserve SBA capacity for future acquisitions.
3Non-mechanical background forces disciplined hiring and talent development rather than owner involvement in technical work, which can undermine team empowerment and leadership development.

Want the Full Story?

The full narrative — the personal details, the hard moments, the host conversation — only lives in the original. Go listen.

Listen on Acquiring Minds

Acquiring MindsJune 3, 2024

Rolling Up EBITDA and Rents with Auto Repair Shops

with Stephen Quinlan & Paul Westhart · GNR Diesel

Listen to Episode →

LenderHawk analysis. Not affiliated with or endorsed by Acquiring Minds.

The Deal

Business

GNR Diesel

Industry

Auto Repair (Light Duty Diesel)

State

Purchase Price

$3.0M

Multiple (REVENUE)

3.0x

Year

2023

Financing

SBA 504

Revenue at Purchase

$2.5M

LTV at Close

90%

Deal Source

other

Financing Structure

SBA 504

Seller Note

Strategic Rationale

Unlocking real estate value via 504 Green financing while securing the operation via creative seller debt.

Post-Acquisition Performance

Underwent rocky transition due to owner involvement, now stabilized with new foreman.

Key Takeaways

1Larger platform acquisitions with better management in place and more technicians reduce concentration risk versus smaller shops with few employees.
2Inclusion of real estate in SBA 7A financing uses valuable borrowing capacity inefficiently; separate 504 green loans for real estate preserve SBA capacity for future acquisitions.
3Non-mechanical background forces disciplined hiring and talent development rather than owner involvement in technical work, which can undermine team empowerment and leadership development.

Want the Full Story?

The full narrative — the personal details, the hard moments, the host conversation — only lives in the original. Go listen.

Listen on Acquiring Minds