A free webinar providing an inside look at how collision shop businesses are being bought and sold and what drives value is now available on-demand to anyone who fills out the simple form at the bottom of this page.
Aired live May 8 by Autobody News, the webinar featured a panel of experts giving actionable and beneficial insights into trends for anyone in the industry, whether they are looking to buy, grow or sell, or simply improve operations by adopting practices that would best position their shop for sale to a hypothetical buyer.
The webinar also included a link to FOCUS Investment Banking’s new valuation tool, which can provide shop owners with a valuation range for their business based on 10 questions.
“Many business owners in this space are only going to sell once,” said Cole Strandberg, managing director at FOCUS Investment Banking. “Our goal is to make sure there are no regrets, you are educated on the process and your worth and how to increase your worth.
“Regardless of where you are in your business journey, there is going to be some value here,” Strandberg added.
Strandberg was joined by Walt Link, former EVP for Gerber Collision & Glass and current CEO of NexGen Collision, a private equity-backed platform; Thomas Goforth, former CEO of Absolute Collision, a seven-store regional MSO he sold to Classic Collision in September 2024; and Spencer Ward, senior associate of Marcus & Millichap, specializing in collision repair real estate.
What Drives Value in Collision Repair?
The panel explained the factors sellers are looking at when looking to buy a collision repair business, including the financial profile; facility quality, footprint and location; DRPs and OEM certifications; operational sophistication; scalability and infrastructure; and team depth and owner involvement.
“The team is most valuable piece of what you’ve built in all likelihood,” Link said.
Current Market Conditions
The panel looked at the characteristics of the collision repair businesses most in demand among potential buyers, including national and regional consolidators, and private equity firms interested in starting a new platform.
“There are more buyers out there than ever,” Strandberg said, but they are looking -- and competing for -- particular opportunities.
Link explained why he looks most closely at a shop’s team and its leadership when considering the next purchase for his private equity-backed platform, while Goforth went into why he looked at a shop’s equipment, in addition to its personnel, when he was growing Absolute Collision from zero to seven stores in four years, mostly through acquisitions.
Link also explained why shop owners need to reconsider taking cash out of their business, particularly if they want to sell it within the next year or so.
Preparing for a Successful Sale
Strandberg said the most important piece of any collision repair transaction is the “story” -- where the business has been, where it is today and what the current owner has set it up to do in the future.
“That’s how you create outsized returns in a transaction,” he said.
Spencer discussed the advantages of leasing land rather than selling it with the business. He showed a tool his firm uses to demonstrate how holding onto the real estate and leasing it to the new business owner can greatly increase the return to the seller over a period of years.
There are keys to maximizing lease values as well, he said, including the terms, structure and rent increases.
Common Misconceptions About Selling Your Shop
The panel responded to three of the most common reasons for not selling a collision repair business: “I’m not ready yet,” “I need a buyer to buy the business and the real estate together” and “My books aren’t clean enough.”
How FOCUS Investment Banking Can Estimate Your Value
The webinar provided a link to FOCUS’ new valuation tool. After answering 10 questions about their business, FOCUS will put together a valuation range.
“We can then talk about what you can change if you don’t like what you’re seeing,” Strandberg said.
Complete the form below to receive a link to the webinar to watch at your convenience.
