Focus Advisors

According to their recent press release, Crash Champions’ Luxe initiative focuses on acquiring and developing locations specializing in EV and luxury OE certified repairs. These businesses are indicative of operating cultures that value training, technology, and advanced repair processes. This is yet another example that consolidators look to acquire businesses that are forward- looking and invest in the future. Interestingly, Crash Champions is branding these facilities differently, suggesting they believe consumers will place additional value on this type of location. https://lnkd.in/eyfn4ZmX

The team at Focus Advisors is headed to the Southeast Collision Conference in Greensboro, North Carolina next Friday and Saturday. The event details can be found here: https://lnkd.in/dHFVf__j We’re looking forward to connecting with automotive aftermarket entrepreneurs from the Carolinas, Virginia, Maryland, West Virginia, and the District of Columbia. These states have seen remarkable economic and population growth in the last few years; to illustrate, see the chart we’ve put together about the region's population boom. This degree of growth has boosted the collision repair industry and has attracted the major consolidators to invest there. This year to date, there have been several collision repair transactions. The two largest included Group 1 Automotive buying the three-shop MSO, RRR Automotive Group, with locations in DC and Maryland. That was soon followed in March by Crash Champions acquiring the nine-shop MSO, Performance Collision Centers, with locations in Virginia, South Carolina, and Georgia. If you’re a collision repair owner in the Southeast region, let’s connect in person next week. Feel free to reach out to us through our website or contact Madeleine Roberts Rich at madeleine.rich@focusadvisors.com.

Dealership Acquisition Trends: Insights from Q1 2024 📈 Our internal database recorded 25 dealer auto body acquisitions made and announced by various dealerships. Among the notable players were Blaise, Ciocca, Ed Morse, Group 1, Lithia, Terry Taylor Group, and several others. Does this trend indicate that dealers are actively divesting their auto body operations, or are forward-thinking dealerships recognizing untapped opportunities in this space? For dealers, acquisitions can expand their parts sales reach into new markets. By acquiring auto body shops, dealerships can tap into a new customer base, increase their market share, and diversify their revenue streams. However, the motivations behind these transactions may vary. Some dealers might be streamlining their operations to focus on core competencies, while others are seizing the chance to expand their service offerings and capture a larger piece of the market.

As a corporate sponsor, Focus Advisors will be attending the CIC event in Seattle next week. We look forward to engaging with industry professionals and exploring new opportunities. If you’ll be there, please don’t hesitate to reach out and connect. https://ciclink.com/

Thank you, FenderBender, for featuring our article. Collaborating with you on this article has been a positive experience. Over the years, we've had the opportunity to assist both single-shop owners and larger MSO owners during various stages of growth. We appreciate the opportunity to contribute our insights.

A Deeper Dive into Boyd Group’s Annual Report. Reading beyond the revenues and earnings just reported by Boyd Group, we paid closer attention to their acquisitions and development numbers. While Caliber has long been focusing more on the development of brown and greenfield shops, Gerber is demonstrating a robust development plan of its own. Of the 106 total shops added by Gerber in 2023, 28 were brown and greenfield openings. That’s about 25% of all shop additions. The ramp-up to open a greenfield shop can be as long as 2 years while brownfield development (leasing and retrofitting an existing building) can be as short as 6 months. What is also interesting in the report is the large number of single-shop acquisitions and the scarcity of MSO shops acquired. Only 9 of the 78 acquired shops were in MSOs. So along with Caliber, Gerber has slackened its appetite for MSOs. Even though two of the largest consolidators have pulled back on MSO acquisitions, up-and-coming consolidators and private equity investors are as enthusiastic as ever to add more MSOs to their portfolios. https://lnkd.in/gFWD_BE2

Kinderhook Industries, LLC, in partnership with Jacob Tilzer and LNC Partners, has acquired Kaizen Auto Care, LLC, with 48 locations across multiple states including Arizona, Colorado, and California. Founded in 2013, Kaizen Collision Center represents Kinderhook’s 30th investment in the automotive sector, emphasizing the trend towards consolidation within the industry. This is Kinderhook’s second foray into the collision repair sector. Previously, they invested in Procare Collision, a Texas based MSO that subsequently merged with Austin Motor Mile and was then sold to Classic Collision . Additional coverage available courtesy of CollisionWeek: https://lnkd.in/g63-BmTZ

Congratulations to Crash Champions on their expansion, now encompassing over 625 locations nationwide. https://lnkd.in/ecK-8WPH

The digital transformation within the automotive sector is accelerating, with modern vehicles incorporating between 1,400 to 1,500 semiconductor chips, a number that nearly doubles for electric vehicles. This trend not only transforms the driving experience but also introduces new complexities in vehicle maintenance and repairs. Understanding these new features is crucial for identifying opportunities and navigating challenges in the automotive and tech industries. Hats off to CCC Intelligent Solutions for their insights in their 2023 Crash Course. https://lnkd.in/g5GqZw-k All infographics credit goes to CCC Intelligent Solutions

It was inspirational for me to extensively interview James H. and Kelly Huard of Painters Collision Centers earlier this year for my "Collision Repair Growth Strategies" talk. Their career histories, their shared vision, and their execution in creating an MSO that was in the 99th percentile nationally in terms of performance was a great story. Made all the more remarkable that they did it as a married couple! Jim and Kelly built and exited the three-shop Painters Collision Centers (plus an ADAS facility) in just shy of three years. Our team at Focus Advisors had the privilege or representing them in their recent sale of Painters to Classic Collision . I dubbed Jim and Kelly the "turnaround team" for their extraordinary ability to see value in struggling shops and to turn them around - front-end and back-end. One of their keys to success that has made me a lot happier and productive at work is to "gamify everything" as a team and collaborate torwards measurable goals. Thanks Autobody News for publishing this piece about the Huards and their recent professional milestone. I am eager to see what's next for these two entrepreneurs. https://lnkd.in/gfeHGY-A