Moving Forward from 2024 Collision Activity

The collision repair industry continued evolving rapidly last year, shaped by a blend of consolidation, economic uncertainty, and shifting repair trends. As the market continues through 2025, many shop owners are asking: Where is the market headed? What are my options? And how can I make informed decisions about the future of my business and property?

Below are the key takeaways from 2024, what to expect going forward, and a few important considerations for those thinking about transitioning out of their business in the next one to five years.

2024 Recap: Consolidation Stays Strong, Even in a Slower Market

While 2024 brought some economic headwinds, such as a drop in collision claims due to a mild winter, more uninsured motorists, and overall inflationary pressures, consolidators didn’t slow down. Over 450 locations changed hands last year, with larger MSOs acquiring both individual shops and regional multi-shop properties.

Caliber Collision led the pack in acquisitions, adding an additional 130 shops throughout the year. These additions were a mix of greenfield developments and acquisitions of existing shops.

Gerber Collision added 56 locations, focusing on key target markets to fill out their footprint and enhance their current operations.

Crash Champions added 41 locations with a combination of both greenfield development, brownfield development, and acquisitions.

Classic Collision focused on expanding its current footprint, adding 56 locations through acquisition. Joe Hudson’s Collision Centers added 47 locations as they strengthened their presence throughout the Southeast and Northeast.

Quality Collision Group and Collision Right both continued to expand their presence throughout the U.S., targeting strategically-located, high-performing independent collision repair shops that align with their operational standards and long-term growth strategies.

This continued activity illustrates that well-run collision centers remain highly attractive, even amid economic uncertainty, and acquirers are still eager to grow.

Valuations: Still Strong for the Right Shops

Valuations remained healthy throughout 2024, particularly for collision centers with clean financial records, consistent revenue, and operational efficiency. Consolidators and investors continue to place high value on businesses that demonstrate strong earnings, solid customer relationships, and well-documented performance. However, expectations are rising. Shops that lack financial transparency or operational consistency are seeing a more limited pool of buyers and lower offers than they may have received in previous years.

This shift highlights the importance of preparation. Owners who have taken the time to clean up financials, standardize processes, and present a clear story are consistently seeing stronger outcomes when they decide to sell.

The Real Estate Factor: Often Overlooked, Always Important

One of the most impactful elements in a collision shop sale is the real estate. Whether an owner chooses to sell or lease their property, the way the asset is positioned can significantly influence the final deal.

When determining whether a lease or sale of the real estate is the best option, there are a few important factors to consider. Factors such as who will be leasing the property, the length of the lease term, and whether there are increases built into the lease all have a large impact on the value of the real estate after a business sale takes place.

Many owners will use the income from the lease of their property to supplement their income after they transition out of shop ownership, making the successful negotiation of a strong lease even more important.

If selling the real estate and business all together is a top priority for an owner, it is crucial to have a deep understanding of the total value of the real estate to ensure money is not left on the table during an exit. Understanding how to package and position the real estate component is an essential part of preparing for a sale and can be the difference between a good deal and a great one.

Looking Ahead: What to Expect for the Remainder of 2025

Moving through this year, the market remains active, though buyers are taking a more measured approach. Many consolidators are focusing on strategic expansion in smaller or secondary markets where competition is lower and opportunities for long-term growth are strong.

For shop owners, this means there’s still a window of opportunity—but timing, positioning, and preparation matter more than ever. Shops that are proactive in getting their operations, financials, and property in order are likely to attract more interest and stronger offers than those that wait until they are ready to exit.

Final Takeaways

For many owners, a collision shop represents years—if not decades—of hard work, personal investment, and community relationships. Deciding whether or when to sell is deeply personal. But whether an owner is nearing retirement or beginning to explore their options, gaining clarity around the business’ value and the broader market landscape is a wise move.

Even if a sale isn’t on the immediate horizon, laying the groundwork now allows owners to make informed decisions and move forward on their terms when the time is right. The more informed an owner is, the better positioned they will be to navigate a sale that reflects the true value of what they have built.