Know exactly what to verify before acquiring a local appliance repair shop — from technician certifications to parts supplier agreements and service history documentation.
Find Appliance Repair Acquisition TargetsAppliance repair businesses trade at 2.5–4x SDE and attract SBA financing when financials are clean. Key risks center on key-person dependency, undocumented service history, and technician retention. A structured due diligence process protects your investment and surfaces hidden deal risks before closing.
Confirm true owner earnings, separate personal expenses, and validate revenue trends across service categories before advancing the deal.
Reconcile reported revenue against bank deposits. Identify owner add-backs, personal vehicle expenses, and any commingled costs inflating or understating true SDE.
Break down revenue by appliance category — refrigerators, washers, ovens — and track average ticket trends. Declining ticket sizes may signal parts sourcing or pricing problems.
Review outstanding manufacturer warranty reimbursements and aging AR. Slow-paying warranty partners can create cash flow gaps that affect post-acquisition operations.
Evaluate technician capabilities, dispatch systems, and whether the business can operate independently of the selling owner post-close.
Request proof of EPA, manufacturer-specific, and trade certifications for each technician. Verify W-2 vs. 1099 status and assess flight risk for key repair staff.
Inspect ServiceTitan, Jobber, or Housecall Pro data for job volume trends, repeat customer rates, and average response times. Undocumented history is a major red flag.
Document which tasks only the owner performs. A seller handling 60%+ of service calls requires a longer transition period or earnout structure to protect business continuity.
Validate customer concentration, manufacturer authorizations, parts supplier terms, and any outstanding liabilities before finalizing deal structure.
Confirm transferability of authorized service agreements with brands like Whirlpool, LG, or Samsung. Non-transferable contracts can eliminate a major revenue stream post-close.
Review pricing terms, return policies, and exclusivity clauses with parts distributors. Conduct a physical inventory count and assess obsolete or slow-moving parts on the shelf.
Flag any single customer representing more than 15% of revenue. Calculate repeat customer rate from service records — high repeat rates signal strong brand loyalty and retention.
Most appliance repair businesses sell at 2.5–4x SDE. Higher multiples apply to businesses with multiple certified technicians, manufacturer authorizations, and documented repeat customer bases above 40%.
Yes. Appliance repair businesses are SBA 7(a) eligible. Expect 10–15% down, a 10-year loan term, and a small seller note of 5–10%. Clean financials and positive cash flow are required for lender approval.
This is a critical deal risk. Require an extended transition period of 6–12 months, structure an earnout tied to technician hiring milestones, or negotiate a price reduction reflecting the key-person dependency.
Not automatically. Each brand — Whirlpool, LG, Samsung — has its own authorization transfer process. Confirm transferability during due diligence and build a closing contingency if key authorizations cannot be reassigned.
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