Brad Mewes, publisher of an insightful blog on the collision repair industry called “Supplement,” recently wrote a thought-provoking article on collision industry consolidation trends. Brad believes the recent spate of mergers and acquisitions has not run its course, but will continue as the number of multi-shop operators (MSOs) will shrink as they are acquired by large consolidators.
Insurance companies are helping to drive this trend, as insurers are creating economies of scale with MSOs that help reduce costs. Similarly, aftermarket parts manufacturers and distributors are experiencing consolidation, as witnessed by the LKQ acquisition of PartsChannel.
Brad Mewes provides strategic and financial advisory services to the automotive aftermarket industry world wide, specializing in M&A (Mergers and Acquisitions) and outsourced corporate finance and CFO functions. Prior to founding “Supplement” Brad spent nearly two decades in collision repair. He also held roles as an equity analyst as well as a management consultant.