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Wednesday, 27 January 2021 17:42

2020 Collision Year in Review by Focus Advisors

Index

...high enough revenues and EBITDA to warrant their time and capital, as well as enough shops---but not too many shops, unless they have the right management team to be able to acquire, integrate and operate their new platform.

 

New Private Equity Investors

 

Center Oak Partners, a Dallas-based PE firm, established itself as a serious player by acquiring 20 shops in the Ohio River and Michigan regions to create CollisionRight under the aegis of an experienced aftermarket executive, Rich Harrision, former CEO of TruRoad.

 

Quality Collision Group acquired four Brandywine Coachworks in suburban Philadelphia and Master Collision Group with five shops in the Minneapolis market. Susquehanna Private Capital is backing Quality Collision, which is headed by former Service King executive Jerod Guerin.

 

At least six other private equity firms are in the hunt for platforms as well. The underlying thesis for these firms appears to be their conclusion that even in a consolidating industry, scale and management will allow higher returns as industry leaders like Caliber and Gerber demonstrate increased value over long periods of investment.

 

Lift Auto Group, a Canadian MSO with 12 shops in Alberta, British Columbia and Saskatchewan, now has two private equity backers. PFM Group invested an undisclosed amount to provide additional capital for further expansion following a 2018 and follow-on investment by Canadian Business Growth Fund.

 

Franchisors and Networks

 

Driven Brands continues to create its own weather by acquiring additional aftermarket franchise platforms, growing those platforms with new franchisees and then integrating the data generated by their multiple entities to more effectively generate revenue increases and expense reductions.

 

Key 2020 acquisitions included the February acquisition of Fix Auto USA and its largest franchisee, Auto Center Autobody.

 

Combined with its 2019 acquisitions of Canadian-based glass replacement company Clairus Group and the ABRA franchise network of 57 shops, Driven now aggregates...


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