Mergers and Acquisitions in Automotive Paint Distribution: Will 2017 be the year of FinishMaster?

Posted on February 28, 2017February 28, 2017 by Brad Mewes

Mergers and acquisitions in automotive paint distribution are heating up. After years of aggressive consolidation in the collision repair customer base of paint distributors, it is logical to see consolidation take hold downstream. Paint is a small but critical component of the $30 billion North American collision repair market. A year and a half ago Read more about Mergers and Acquisitions in Automotive Paint Distribution: Will 2017 be the year of FinishMaster?[…]

Building Economies of Scale

Posted on January 24, 2017 by Brad Mewes

Economies of scale is a term that is thrown out quite a bit in the business world. On the west coast where I’m from, scale is a favorite term of tech entrepreneurs. Management and executives talk about leveraging scale. Investors seek out scalable companies. Every first-year business school student is familiar with the term. What Read more about Building Economies of Scale[…]

I Can’t Buy Fenders by the Trainload – One Reason Consolidation in the Automotive Aftermarket Will Continue

Posted on September 6, 2016October 31, 2016 by Brad Mewes

I speak at a fair number of events across the world. It is one of the more enjoyable parts of my job. I speak about the intersection of finance and strategy and how that influences consolidation in the automotive aftermarket. Because both finance and strategy are so future focused, I’m often asked my views of Read more about I Can’t Buy Fenders by the Trainload – One Reason Consolidation in the Automotive Aftermarket Will Continue[…]

$6 Billion by 2020. Is that even possible???

Posted on June 2, 2016 by Brad Mewes

I’m back from Barcelona, having presented at IBIS (International Bodyshop Industry Symposium) on consolidation trends. IBIS is one of the marquee organizations, the only I know of that looks at the collision industry globally. It was a true honor to get in front of this group. So many fascinating presentations – email me to discuss Read more about $6 Billion by 2020. Is that even possible???[…]

Lean Will Save the Industry…Or Will It?

Posted on January 19, 2016January 25, 2016 by Brad Mewes

Increasing vehicle complexity and OEM involvement are increasing the cost of doing business in the collision industry. Capital requirements are increasing. More training, more tooling, and more equipment is needed to compete in today’s environment. The result is lower margins. Decreasing profitability is a trend that has been taking place for some time in the Read more about Lean Will Save the Industry…Or Will It?[…]

The Consolidation Curve in the Automotive Aftermarket in Paint, Parts, and Distribution Segments

Posted on December 31, 2015January 27, 2016 by Brad Mewes

The industry is consolidating. That statement probably comes as little surprise. The entire automotive aftermarket is consolidating. New car dealers, tire vendors, parts distributors, paint distributors, software providers, and collision repair shops are all consolidating. But were you aware that industries tend to follow a predictable path of consolidation, referred to as the consolidation curve? Read more about The Consolidation Curve in the Automotive Aftermarket in Paint, Parts, and Distribution Segments[…]

Avoid These Four Common Business Acquisition Mistakes

Posted on October 28, 2015 by Brad Mewes

Pursuing acquisitions to fuel growth is an attractive way to grow a company. But business acquisitions can appear risky, especially if you have never completed one before. Acquisitions often require a business owner to take on substantial debt. An acquisition-based business strategy also requires a higher level of financial discipline. For unaccustomed businesses this can Read more about Avoid These Four Common Business Acquisition Mistakes[…]

Four Reasons Acquisitions Make Good Business Sense

Posted on August 25, 2015September 16, 2015 by Brad Mewes

Consolidation is significantly changing the landscape of the collision industry. But it is not just the collision industry that is consolidating rapidly. Throughout the entire automotive aftermarket there are examples of consolidating industries. Paint distribution, first consolidated in the late ‘80s and early ‘90s is undergoing a second round of consolidation. LKQ and aftermarket parts distribution, consolidated once already by LKQ is in the very early stages of a second round of significant consolidation. Aftermarket mechanical parts distribution already dominated by behemoths such as NAPA (Genuine Parts Co.), O’Reilly and AutoZone, and are seeing continued consolidation activity. Even automotive retail and new car dealership industry, once a paragon of the family-held small business, is undergoing consolidation at the hands of AutoNation, Sonic, and Warrant Buffett’s Berkshire Hathaway Automotive Group. It begs the question, why is consolidation such a popular business strategy? […]

Collision Repair Acquisition Pricing and Trends: The Boyd Group

Posted on July 8, 2015February 24, 2018 by Brad Mewes

For the past few weeks we have been analyzing the results of the Boyd Group Income Fund (Boyd). Boyd is the largest operator of collision repair facilities in the world by number of locations, and one of the top four in terms of revenues. Boyd is also a serial acquirer of other collision and glass services businesses. Founded in 1990 as a single location in Winnipeg, Canada, Boyd has grown to be the largest provider of collision repair services almost exclusively via acquisition, or buying other collision repair businesses.

Previously I spoke about the importance of developing new core competencies to compete in the new era of collision repair. We also discussed at length how a business owner can leverage the tools of corporate finance to drive systematic growth. Boyd is an example of a company that has effectively done both to become a world leader in collision repair and glass repair services.

The price and terms of acquisitions are always a hotly discussed topic in any industry, collision repair is no exception. […]