Comprehensive Retirement and Estate Planning for an Auto Body Shop Owner

Written by Kristen Mannillo

Client Overview

The auto body repair shop is the largest Multi-Shop Operator Network of independently owned collision repair facilities that has experienced significant growth over the last 30 years. They deliver national scale, consistently high-quality vehicle repairs, and industry leading customer satisfaction ratings.

The Opportunity

The owner was looking for help with transitioning into retirement and estate planning. They engaged 1RDG the Financial Center to provide consulting and advisory services with a focus on the following:

  • Sell facilities to an employee with years of dedication and profound understanding of the business with the intent that the owner remains involved for a structured period.
  • Assessing existing financials to determine future cash flow

“We then prepared a retirement planning analysis for the current owner to map out what the business sale meant for him and how it impacted his retirement goals.”

The Solution

  • We prepared a cash flow analysis based on historical financial statements that factored in the debt needed to pay the current owner as part of the ownership transition.
  1. This helped support the valuation of the company
  2. It gave the buyer confidence to move forward with the transaction
  3. It gave him further confidence in the performance of the business and potential outlook.
  4. Confirmed the structure of the deal
  • We then prepared a retirement planning analysis for the current owner to map out what the business sale meant for him and how it impacted his retirement goals
    1. Analysis detailed out dates of payments, estimated rates of return based on various scheduled market injections, tax implications, personal living expenses, etc.
  1. Factored in other assets held, real estate and net worth
  2. Estate tax planning
    1. This gave the seller confidence to move forward with the deal.
    2. Provided confidence that they would be able to meet their retirement goals

The Outcome

The owner was able to negotiate a fair deal where both parties were satisfied. Seller felt rewarded for years of hard work and buyer left confident in success of this new venture.

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