Independent repair shops continue to dominate the collision repair and paint business, but their dominance and profitability are being challenged by competitive and other factors.

Private equity groups are assembling branded regional and multistate franchises. Auto dealerships continue to grab market share. Advanced Driver Assistance Systems (ADAS), collision avoidance sensors, automated braking, and other technologies stand to reduce the probability of accidents, although that’s somewhat offset by the sheer number of cars on the road and increased traffic density. Independents retain pricing advantages, but they’ll need to invest in their business to stay ahead of the competition. For those shops unable to make that investment, cashing out at today’s elevated valuations may be a smart move.

The team at FOCUS Investment Banking can help you decide what’s right for your situation. With over 40 years of experience in the automotive aftermarket, both within the industry and as investment bankers, we understand industry dynamics to help business owners maximize their outcome. We’ve helped dozens of companies achieve their strategic objectives, whether it’s buying, selling, or raising capital. Our clients trust us to deliver positive results.