[911Rob]

Congrats! I've bought and sold a few businesses, as well as ran a few. I say "goodwill" - "smoodwill". It's worth nothing.

$450K/gross per year? That's also nothing. Overhead expenses alone can eat up half of that.

Building expenses
Specialized equipment
Bodyman
Managment
Secretarial
Accounting
Legal
Office expenses/ phone, supplies,furnishings, etc.

A good accountant won't allow much for "goodwill" in an appraisal, may be best to bring in your own independent accountant to appraise value too.

Be very careful about extended liabilities. In fact, best to buy just the assets and name, no company, no liablility. Tax liabilities are the worst. Buy the name and then just change it slightly so customers wont really notice. such as Als Autobody to Als Autobody and Repairs.

As far as goodwill, you will be shocked to see how much business is actually based on the management/ownership of the company now, and when it changes so does the goodwill.

My approach to buying existing businesses is ZERO for goodwill. I'll buy the hard assets, throw in a bone for the backyard inventory that'll never sell or such, but no goodwill. Take it or leave it. They usually take it.

Personal Story:
My very good friend, Martin, who now owns part of Star Autobody in Vernon, BC. Used to work down at the coast for an autobody shop, worked as an insurance appraiser for them for years and years. One day he had the gracious opportunity to buy the whole business; so he borrowed and borrowed and bought it, goodwill and all. Six month later the government seized the bank accounts and foreclosed the business, he lost everything (bankrupt) and had to pay the gov't off too. Took him years to get back on his feet.... which he's done now.
Look him up, he knows more about the autobody business than anyone I know.

Good luck, my two cents