The Dirty Secret About Private Equity in Auto Repair (That Nobody's Talking About)

Chris Lawson

Jun 25 • 📜Shop Culture📜

Look, I get it.

When someone waves a 5x EBITDA check in your face, it's tempting.

But here's what 7 years of paying attention in this business has taught me: Private equity firms are culture killers.

Period.

That family atmosphere you spent 20 or 30+ years building?

The techs who've been with you since day one?

The service advisors who know your customers' kids by name?

Gone. In 18 months or less.

I just read Todd Hayes' new Ratchet + Wrench article breaking down how PE works in our industry.

And while I respect Todd's hustle (the man built an $80M operation), here's my take:

You NEED to understand how private equity works.

Not because you should sell to them.

But because they're coming whether you like it or not.

Here's the playbook they don't advertise:

Buy your shop and a bunch more (3–5x EBITDA)
Roll them up together
"Optimize" (aka gut your culture, cut benefits and perks, cut "overhead", etc.)
Piss customers off and push your best people out ("my way or the highway" destroys loyalty and sends top performers packing)
Flip for profit (10–14x EBITDA)

The kicker?

When PE rolls through a town, clients we are advertising for get flooded with calls and applications from techs and advisors looking for shops that still give a damn about their people.

So yeah, read this article. Learn their game.

But more importantly...

If you hear PE is sniffing around your area, call me immediately.

Because while they're destroying cultures, you'll have a golden opportunity to recruit the best talent in your market.

The techs fleeing PE shops aren't looking for another corporate gig.

They want what you've got - a real shop with real values.

Don't let this moment pass you by.

Here's a link to the article:

Private Equity: What to Know Before You Sell (Or Scale)

P.S. - Already lost good techs to a PE shop? Let's talk strategy. The talent wars are real, and I've got battle-tested tactics that work for beating them at their own game.

#AutomotiveIndustry #TechnicianRecruitment #PrivateEquity #IndependentShops #AutomotiveAftermarket #ShopCulture #TalentWar

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