Car Repair Garage & MOT Center Valuation
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Typical Valuation for a Car Repair Garages / MOT Centers Business
| Metric | Typical Range |
|---|---|
| EBITDA Multiple | 2.5-4.0× |
| EBITDA Margin | 15-25% |
Market Overview
Car repair garages and MOT centers typically sell for 2.5-4.0× EBITDA in the UK market. The range reflects location quality, equipment, customer retention, and premises ownership. Garages with freehold premises command premium multiples (3.5-4.0×) due to property value, while leasehold operations trade lower (2.5-3.0×). Key differentiators include MOT license and bay (recurring annual revenue), modern diagnostic equipment, qualified technicians (Level 3 IMI), strong customer database (1,000+ active), freehold or long lease, and revenue mix (servicing/MOT 60%+ vs breakdown-only). Corporate groups (Halfords Autocentres, National Tyres) acquire quality sites, while most buyers are individuals. Electric vehicle (EV) servicing capability increasingly important as market transitions.
How to Value a Car Repair Garages / MOT Centers Business
The standard methodology for valuing a car repair garages / mot centers business in the UK is EBITDA-based. A buyer will calculate your Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) and apply a multiple based on sector benchmarks, business quality, and growth prospects. For car repair garages / mot centers businesses, that multiple typically ranges from 2.5-4.0×.
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