Why Profitable Collision Shops Don't Always Sell | Collision Advisory
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    Operator's Edge

    The Trapped Owner: Why Profitable Shops Don't Always Sell

    April 23, 20264 min readDoug Higgins

    Most shop owners don't think about the end until it's too late to change anything.

    That's the trap.

    Not a bad business. Not a lazy owner. Just someone who built without the end in mind.

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    They optimized for today. Revenue, throughput, keeping customers happy, keeping the floor running. All good things.

    But somewhere along the way they built it around themselves. Every key relationship runs through them. Every vendor deal is theirs to hold. The processes that run the shop are so specific, so intricate, that nobody else can replicate them.

    The shop works. But only because they make it work.

    Now someone's standing in front of them with a check, and the number doesn't reflect what they built. Because what they built doesn't transfer.

    A buyer has to break it first to make it work for them.

    That discount, sometimes 30, 40, 50 percent below what the owner expected, is the price of building without the end in mind.

    What does building with the end in mind actually mean?

    It means building a business that exists beyond you. Not someday. Starting now.

    Build relationships that survive your exit. Your DRP contacts should know your manager, not just your cell number. Your vendor relationships should be institutional, not personal. When you leave, the business keeps the relationship.

    Keep your processes replicable. The systems that run your shop should be simple enough for someone else to learn and run. If your estimating workflow, supplement process, or job close only work because you invented them and only you understand them, that's a liability on your balance sheet.

    Develop a manager who can hold the floor without you. Not forever. For two weeks. If there's no one like that, a buyer is buying a job.

    Keep books that close clean. Within ten business days every month. Three years of clean P&Ls. If your books take six weeks to close, that's a discount on day one of diligence.

    The good news

    None of this requires you to be thinking about selling tomorrow.

    It just requires you to build like someone might want to buy it someday. That mindset changes how you make decisions. You stop building things only you can run. You start building things that would work without you.

    The shops that do this don't just sell for more. They run better while you own them. Staff who can execute without constant direction. Financials that tell the truth every month. Processes that scale because they're designed to be followed, not reverse-engineered.

    Build with the end in mind. The exit is a side effect.

    If you're not sure where to start, the honest question is: if you walked out tomorrow and never came back, what would survive? Not what's written down. What would actually hold. That's your starting point.

    If you want help thinking through what that looks like for your shop, start by scheduling time with me.

    Doug Higgins

    Doug Higgins

    Founder, Collision Advisory

    Former CFO at Kroger's Midwest Division and CEO of TAG Auto Group. Doug brings institutional financial rigor to the collision repair industry.

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