How much does a Bike Repair Shop cost to buy?

A typical Bike Repair Shop sells for 2.5x to 4.5x seller's discretionary earnings. With estimated SDE of $231K, expect to pay roughly $578K to $1.0M before adjustments for assets, debt, growth, and local market quality.

How much does it cost to start a Bike Repair Shop?

Startup costs range from $30K to $120K depending on location, equipment, and scale.

Physical

Bike Repair Shop

Q: What are the profit margins for a Bike Repair Shop?

The average profit margin for a Bike Repair Shop is around 42%. Main costs are storefront rent (if not home-based), bike repair stand, tools ($5K-$15K), parts inventory, mechanic wages, utilities, and insurance. A solo operator can work from a garage; multi-mechanic shops need higher-traffic retail footprint. Inventory management is critical — slow-moving parts tie up cash.

High margins on parts and labor in a booming bike commuting market

Bottom line

Strong cash-flow candidate with manageable operations.

Bike repair shops service bicycles for commuters, mountain bikers, and casual riders. Revenue comes from hourly labor (tune-ups, brake work, drivetrain service) and parts sales (chains, brake pads, tires, components). With urban bike commuting growing and e-bikes accelerating demand, margins are strong and repeat customers are reliable. Shops range from small one-person operations to multi-bay locations with 3-5 mechanics.

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Acquisition score

Strong

Avg Revenue

$550K

Profit Margin

42%

Acquisition Multiple

2.5x - 4.5x

Startup Cost

$30K - $120K

How It Works

Customers book service appointments (tune-ups $50-$100, drivetrain service $60-$150, wheel building $50-$200) or drop in for quick fixes. Shops stock common replacement parts (tires, chains, brake pads, grips) and order specialty components on demand. E-bikes and commuter segments drive steady repeat traffic. Upselling maintenance contracts and new bike sales add margin.

Revenue Range

Low End

$180K

Typical

$550K

High End

$1.4M

Real Acquisitions in This Category

SBA 7(a) change-of-ownership loans · NAICS 811490 · Other Personal and Household Goods Repair and Maintenance

Deals tracked

26 in last 24 mo

Median loan

$375K

$156K–$742K p25/p75

Implied deal size

$441K

median · ~85% LTV

Charge-off rate

—

not enough resolved loans

Deal Size Distribution

<$150K

$150K–500K

$500K–1M

$1M–2M

>$2M

Deal Flow Over Time

12-month momentum

-70.0%

deal volume vs prior 12 mo

Median loan Δ

+45.7%

6 recent · 20 prior

Financing Profile

Median rate

9.50%

8% fixed · last 24 mo

Median term

120 mo

standard 10-yr

Collateralized

of loans secured

Median jobs

supported per deal

Top lenders in this space

Live Oak Banking Company20

The Huntington National Bank5

TowneBank4

Citizens Bank4

Beacon Bank and Trust3

Where deals happen

FL20

TX11

MO7

CA6

IN6

PA4

NC4

GA4

IL4

SC4

Franchise vs independent

Franchised acquisitions finance at $315K median vs $427K for independents — a -26% franchise discount. Franchises make up 19% of deals tracked.

Recent Comparable Deals

Closed	State	Loan	Implied deal	Jobs	Franchise
Mar 2026	TX	$775K	$912K	14	Poolwerx
Feb 2026	FL	$450K	$529K	12	—
Dec 2025	FL	$50K	$59K	2	—
Dec 2025	FL	$1.2M	$1.5M	2	—
Nov 2025	FL	$910K	$1.1M	6	—
Jun 2025	TX	$156K	$184K	16	America's Swimming Pool Co.
Feb 2025	IL	$45K	$53K	2	Oxi Fresh Carpet Cleaning
Jan 2025	CA	$4.7M	$5.5M	10	—
Jan 2025	CA	$350K	$412K	10	—
Jan 2025	CA	$995K	$1.2M	11	—

Volume rank #77/544Deal-size rank #482/544Momentum rank #358p90 loan: $1.2MData as of Mar 2026

Source: SBA 7(a) FOIA dataset, filtered to acquisitions (loans where business age is "Change of Ownership"). Implied deal size assumes an 85% loan-to-purchase ratio, a common SBA change-of-ownership structure. Charge-off rate shown only when 10+ loans have resolved (paid in full or charged off). Interest rates reflect last 24 months only. Actual deal values vary with equity injections, seller financing, and working capital terms.

Pros

+40%+ margins on parts, 60-75% on labor
+Repeat customer base — people ride year-round
+Growing e-bike segment creates higher-ticket service calls
+Can operate from small 500-800 sq ft storefront
+Online communities and local cycling groups drive word-of-mouth

Cons

-Requires trained mechanics — hard to scale without good staff
-Low average ticket ($80-$150) means volume is critical
-Seasonal peaks (spring/summer) and winter troughs
-Big-box retailers (Walmart, Dick's Sporting Goods) undercut on commodity services

Best For

Mechanics with cycling passion who enjoy building relationships with a loyal community and can teach others

Operating Costs

Main costs are storefront rent (if not home-based), bike repair stand, tools ($5K-$15K), parts inventory, mechanic wages, utilities, and insurance. A solo operator can work from a garage; multi-mechanic shops need higher-traffic retail footprint. Inventory management is critical — slow-moving parts tie up cash.

SBA Financing Estimator

Adjust the deal — see if it cash flows after debt service

+$7K/mo

after debt service

Deal price — $1.1M

Range: $1.1M (2.5×) to $3.0M (4.5×+)

Down payment — 15% ($165K)

SBA minimum equity injection is 10% for change-of-ownership

Interest rate — 9.50%

SBA median for this category: 9.5%

Loan term — 10 years (120 mo)

SBA median for this category: 120 months

Down payment

$165K

15% equity injection

Loan amount

$935K

85% SBA-financed

Monthly payment

$12K/mo

$517K total interest

Monthly profit

$19K/mo

at 42% margin

Monthly cash flow after debt service

+$7K/mo

Down payment paid back in ~24 months — strong return

Estimates only. Excludes owner compensation, capex, working capital draws, and taxes. Margin assumes average occupancy and volume. Actual SBA terms vary by lender and borrower profile.