The auto repair industry is firing on all cylinders as consumers put off new-car purchases and the rise of hybrid and electric vehicles create new service opportunities.
The collision & body services segment leads the industry in terms of growth, with an average annual growth rate of 34.9%. Here’s what private market dealmakers need to know.
Opportunities in the Collision & Body Space
Source: Grata
Collision & body services companies account for 17.5% of the broader auto repair industry. These companies offer services such as paint jobs, dent repair, glass replacement, and more.
Privately owned businesses account for the vast majority of the collision & body segment. There are currently over 20,000 companies in the space that are ripe for acquisition.
What’s Driving Growth in the Collision & Body Sector
Source: Grata
The collision & body segment sees the highest average growth rate (34.9%) of the sectors analyzed in Grata's PE Playbook: Auto Repair.
This year saw some 1.6B cars on the road around the world. Record numbers of vehicles in circulation naturally leads to more car accidents, driving demand for collision & body services. The cost of this kind of repair also typically runs higher than those in other auto repair markets.
Additionally, the collision & body sector is a hotbed for consolidation, pooling revenue into fewer, larger organizations.
Because most collision repair services are covered by auto insurance, insurance providers direct customers to repair shops in their network. This guarantees a steady flow of customers.
Top Companies in the Collision & Body Sector
Source: Grata
The Grata team has curated a list of top private companies in the collision & body sector. These companies have been selected based on their revenue and employee headcount compared to the industry averages.
Grata users can see the list here.
Take Action with Grata
If you’re a private market dealmaker looking to make moves in the collision & body space, Grata can help you put the insights in this article into action.
From in-depth market research to sourcing to pipeline management and relationship nurturing, Grata’s end-to-end dealmaking platform streamlines your workflows so that you can close more deals.
Schedule a demo today to get started.
