In 2023, consolidators, accelerators, and independent MSOs continued their growth efforts in the collision repair industry despite challenges like rising interest rates and technician shortages according to Focus Advisors'  annual paper on merger and acquisitions activity in the US collision repair industry.

The "Big Five" (Caliber, Gerber, Crash Champions, Classic Collision, Joe Hudson's), private equity accelerators, and independent MSOs acquired over 550 shops collectively. These companies focused on acquisitions and developments to expand their footprints and improve performance.

Key trends in 2023 included stable valuations for well-run independent MSOs despite shifting 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 metro and the Washington-Baltimore corridor saw considerable acquisition activity.

The Big Five together added about 278 shops nationally last year, accounting for 50% of collision industry mergers & acquisitions deal volume. By zeroing in on attractive markets and securing leading positions regionally, the Big Five aim to capture insurer volume through scale, density and performance. Their unrelenting acquisition pace spotlights an enduring consolidation trend as major consolidators jockey for position in the still-fragmented collision repair landscape. Caliber Collision regained its title as the collision repair industry’s most active acquirer in 2023, adding about 150 shops nationally, of which about half were green/brownfield locations. This expansion grew Caliber’s footprint from 1,552 repair centers in 2022 to more than 1,700 in 2023. 

Accelerating consolidators like 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 firms actively seeking investment opportunities.

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

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