Buying an auto repair shop in South Florida

• Technicians who have been there for years, including at least one who can diagnose hard electrical and computer problems without the owner.
• A trusted service writer who isn't the owner.
• A spread of customers: no single fleet, dealer or insurer the shop can't live without.
• Shop software with clean repair orders, so you can see month by month how many cars came in, the average bill and the comebacks (jobs redone under warranty).
• Current scan tools, and equipment for calibrating driver assistance cameras and sensors, which many newer cars need after windshield or body work.
• For body shops: a working paint booth, a frame machine, and insurer or manufacturer certifications that keep work coming.
• A lease with years left, enough bays and parking, and zoning that allows auto repair.

Ask for repair orders, not just tax returns. Shop software shows how many cars come in, the average repair order, margins on parts and labor, and which customers bring in the money. If one fleet or one insurer's referral program is a big share, ask how that relationship started and whether it depends on the owner personally.

Technicians are the hardest part to replace. Find out what each one earns and how (flat rate or hourly), whether they own their tools, and whether any have said they'd leave if the shop sells.

Go over the equipment with someone who knows it: the lifts (and their inspection records), alignment rack, scan tools, air compressor and, for body shops, the paint booth and frame equipment. Check how often jobs come back, the warranty claims, and any open complaints with FDACS.

Shops handle oil, solvents and paint, and some sit on properties with old underground tanks or in-ground lifts. If real estate is part of the deal, or your lease makes you responsible for contamination, get an environmental report before you close.

• Who are your biggest customers, fleets or insurers, and how long have they been with you?
• How long has each technician been here, and how are they paid?
• What does a typical week look like for you, and which jobs can only you do?
• Where do new customers come from now: referrals, online reviews, a dealer or an insurer program?
• What equipment will need replacing in the next few years?
• Have there been any complaints to FDACS or the county, or any warranty disputes?
• In Miami-Dade or Broward: which of your technicians hold the county certifications, and do you think they'll stay?

South Florida covers Miami-Dade, Broward, Palm Beach and Monroe counties: Miami, Hialeah, Doral, Fort Lauderdale, Hollywood, Pompano Beach, West Palm Beach, Boca Raton, Jupiter, and the Florida Keys down to Key West. It's the state's largest metro area and its most international. PortMiami, Port Everglades and Miami International Airport tie the region to Latin America and the Caribbean, which supports a deep base of wholesalers, freight forwarders and logistics firms, many of them near the airport. Tourism and cruises, finance and wealth management, health care, real estate and construction carry much of the rest. Palm Beach County adds wealthy seasonal residents and, out west near Lake Okeechobee, sugarcane and vegetable farms. In the Keys, nearly everything turns on visitors, fishing and boating.

Companies that serve homes, condo buildings and other businesses do well here: the building trades, property services, insurance agencies, medical and dental practices, and professional firms.

Costs run high: commercial rent, wages and, above all, property and windstorm insurance. Price the insurance before you make an offer, not after. Miami-Dade and Broward make up the Florida Building Code's High-Velocity Hurricane Zone, with stricter rules for roofs, windows and structures. That raises building costs, and it also gives steady work to the contractors who know those rules well.

Much of the workforce and many customers speak Spanish as well as English, and a company that works well in both languages has an edge. The winter season matters more in Palm Beach County and the Keys than in Miami. In the Keys, the cost of housing makes hiring and keeping staff one of the hardest parts of running a company. Ask any seller there how they find workers and where those workers live.