Consolidation on steroids in the US

Consolidators, accelerators and independent MSOs continued their efforts to grow the collision repair industry in 2023, despite challenges such as rising interest rates and a technician shortage, according to Focus Advisors’ annual report on U.S. collision repair industry M&A activity.

The Big Five (Caliber, Gerber, Crash Champions, Classic Collision, Joe Hudson’s), private equity accelerators, and independent MSOs have collectively acquired more than 550 stores. These companies have focused on acquisitions and growth to expand their reach and improve performance.

Key trends in 2023 included stable valuations for well-run independent MSOs despite changing deal structures due to high-interest-rate environments. Regional consolidation patterns emerged as consolidators targeted specific markets for expansion. Notably, the New York-Newark-Jersey City metropolitan area and the Washington-Baltimore corridor saw significant acquisition activity.

The Big Five collectively added about 278 stores nationwide last year, accounting for 50% of the M&A volume in the collision repair industry. By focusing on attractive markets and securing leading regional positions, the Big Five aim to capture insurer volume through scale, density and efficiency. Their relentless pace of acquisitions underscores the ongoing trend of consolidation as the major consolidators jockey for position in the still-fragmented collision repair landscape. Caliber Collision reclaimed its title as the most active acquirer in the collision repair industry in 2023, adding about 150 stores nationwide, about half of which were green/industrial locations. This expansion increased Caliber’s footprint from 1,552 repair centers in 2022 to more than 1,700 in 2023.

Accelerated consolidators such as Quality Collision Group, CollisionRight, Kaizen Collision and others also made strategic acquisitions to expand their networks. Private equity interest in the collision repair sector remained high, with companies actively seeking investment opportunities.

Overall, despite external challenges, the collision repair industry has demonstrated resilience and continued growth, with various players expanding their businesses through acquisitions and expansion.