The collision repair industry entered 2025 with cautious optimism. After several years of aggressive consolidation, many expected capital markets to ease, deal volume to rebound, and valuations to regain momentum. Instead, the year delivered a more disciplined, uneven, and revealing M&A environment.

 

Consolidation continued, but not without changes. Buyers remained active, yet increasingly selective. Capital became more expensive, underwriting standards tightened, and the gap between top-performing operations and the rest of the market widened. The result was not a drastic slowdown in consolidation, but a recalibration of what buyers were willing to pay and who they were willing to acquire.

2025 Growth by Operator

Despite macro-economic headwinds and an industry wide slowdown in claim counts, there was still significant growth that occurred in 2025 for the major consolidators in the space both through acquisitions and greenfield and brownfield development.

Across the 12 largest operators, approximately 486 net locations were added during the year through a combination of acquisitions, greenfield development, and selective brownfield expansion.

Consolidator Strategy Deep Dive

While aggregate growth provides helpful context, individual operator strategies highlight how consolidation evolved throughout the year.

Caliber Collision

Caliber added approximately 300+ locations in 2025, maintaining its position as the most active consolidator in the industry. Growth was driven primarily by acquisitions, complemented by new construction.

 

Notably, Caliber also rationalized parts of its legacy footprint, closing select locations acquired more than a decade ago as long-term leases reached expiration. Based on conversations with landlords of Caliber-operated properties, these closures reflect a broader trend toward portfolio optimization rather than retrenchment.

Gerber Collision & Glass

Gerber added an estimated 62 locations during the year. As of Q3, approximately 60% of new locations were acquisition-driven, with the remaining 40% stemming from greenfield and brownfield development.

 

This balanced approach highlights Gerber’s emphasis on controlled growth while maintaining flexibility across acquisition and development pipelines

Crash Champions

Crash Champions did not complete any acquisitions in 2025, instead focusing on limited greenfield development. New locations included:

• Two greenfield sites in New Mexico
• One location in Portland, Oregon
• One location in Florida

Strategically, the company shifted attention toward converting existing locations into Luxe EV-focused facilities, signaling a temporary pivot from expansion to operational specialization.

Classic Collision

Classic Collision added 51 locations, with 44 acquired and 7 developed through greenfield or brownfield projects. Growth was anchored by notable acquisitions, including:

• Kendrick Paint & Body (8 locations across Georgia and South Carolina)
• Advanced Collision (8 locations across Tennessee and Georgia)

Classic’s strategy remained consistent: prioritize dense, regional tuck-in acquisitions within established operating markets.

Industry Overview

The collision repair industry faced a more challenging operating environment in 2025 than many anticipated. A combination of softer claim counts, elevated interest rates, and continued pressure on margins led to a noticeable slowdown in repair volume across much of the country. Public reports reinforced this trend with Gerber Collision’s 2025 filings reflected same-store sales declines through the first half of the year, followed by a return to positive same-store sales in Q3, signaling early signs of stabilization rather than a full rebound.

 

Despite these headwinds, performance across the industry was far from uniform. Operators with strong OEM certifications, advanced ADAS capabilities, and efficient labor and throughput models continued to outperform peers. Well-capitalized platforms and best-in-class independents were better positioned to manage volume volatility, while less efficient operators felt a disproportionate impact from declining claims and rising costs.

 

The takeaway from 2025 was not a collapse in demand for collision repair, but a period of uneven performance across the industry as operators adjusted to softer volumes and tighter operating conditions.

Notable Headlines

Several major developments shaped sentiment and strategy across the collision and M&A landscape in 2025:

• Caliber Collision confidentially filed for an Initial Public Offering (IPO) in July, underscoring both the scale of the platform and the industry’s long-term institutional appeal, even amid short-term volatility.
• Boyd Group Services (Gerber Collision & Glass) acquired Joe Hudson’s Collision Centers for approximately $1.3 billion, marking one of the largest collision transactions to date and immediately reshaping the competitive landscape.
• Crash Champions shifted focus away from acquisitions, prioritizing balance sheet management and selective greenfield development while investing heavily in EV-focused “Luxe” facilities, a notable strategic pivot that signaled a broader return to operational optimization over pure expansion.

Together, these headlines reinforced a common theme: consolidation remains intact, but strategy, pacing, and capital discipline matter more than ever.

Real Estate: The Difference Between a Good Sale and a Great Exit

After reviewing numerous collision exits, one pattern is clear: real estate decisions frequently determine how much value an owner ultimately walks away with.

 

In 2025, as claim volumes softened and buyers became more disciplined, real estate increasingly determined whether an exit maximized value or left equity on the table. Across numerous transactions, the structure of the sale or lease of a property, independent of operating performance, often proved to be a determining factor in transaction outcomes. Seemingly small decisions related to lease terms, rent levels, and control frequently resulted in seven-figure differences in total proceeds.

 

One of the most common questions operators ask when evaluating a sale is whether they should sell the real estate, lease it to the buyer, or retain ownership. There is no one-size-fits-all answer. The right structure depends on an operator’s long-term financial goals, reliance on rental income, retirement timeline, appetite for ongoing involvement, and most importantly, the specific buyer across the table. The same property can be worth materially different amounts depending on how and to whom it is leased.

 

As consolidation matures, real estate is no longer a secondary consideration after the business sale. For owners thinking about exiting, it is a core driver of value, and one that requires the same level of planning and expertise as the sale of the operations themselves.

Looking Ahead to 2026

Heading into 2026, buyer sentiment is showing early signs of improvement. After a period of recalibration following the post-COVID acquisition surge, the market appears to be settling into a more sustainable rhythm. Capital remains available, confidence in the collision repair industry’s long-term fundamentals is intact, and disciplined growth is back in focus.

 

Continued differentiation is expected in the market: high-quality operators with scale, certifications, and clean financials should see renewed interest, while average performers may face a more selective buyer pool. Additional platforms are likely to enter or re-enter acquisition mode, though with greater emphasis on fit and execution.

 

All eyes will be on Gerber as it works through the integration of more than 250 Joe Hudson locations, a process that will influence acquisition appetite, competitive dynamics, and pricing benchmarks across the industry.

 

Consolidation is far from over. But the next phase will reward preparation, transparency, and strategic positioning more than sheer size alone.