The collision repair industry experienced a slow 2025 marked by a major consolidation deal that reshaped the competitive landscape late in the year, according to a new report from Focus Advisors.
The firm, a collision merger and acquisitions advisory firm published the report to analyze operating conditions, consolidation activity and investment trends in the North American collision repair industry during 2025.
"From continued increases in total-loss frequency to the whipsaw impact of tariff rates on parts costs to a mild winter with fewer hail events, the industry internalized uncertainty about both the present and the future," the authors wrote.
"Month after month, quarter after quarter, operators kept expecting a positive turn. Few operators realized positive gains in a disappointing revenue year."
The report drew on public industry data and Focus Advisors’ proprietary transaction and deal-flow information to examine acquisition activity among large consolidators, mid-sized MSOs and private equity-backed platforms and assess factors affecting repair demand and valuations across the U.S. collision repair market
Repair volumes declined through much of the year as several factors weighed on claims activity. The report points to higher total-loss frequency, tariff volatility that pushed up parts costs and a mild winter with fewer hail events.
Many operators expected business conditions to improve as the year progressed, but revenues remained weak across much of the industry.
Mergers and acquisitions slowed as well. Many shop owners delayed selling while buyers became more cautious. Declining revenue and lower EBITDA reduced enterprise values even though valuation multiples remained relatively stable.
The year’s biggest development came in November when Boyd Group Services announced that its Gerber Collision & Glass division would acquire Joe Hudson’s Collision Centers. The deal, which the authors described as a "block-buster event", combined the second- and fifth-largest operators by location count into a North American network of 1,301 locations.
"...A spectacular event in an otherwise disappointing year for M&A," the authors added.
The transaction significantly expanded Gerber’s presence in the southeastern United States and reduced the number of large national consolidators from five to four.
Growth among the largest MSOs was otherwise limited in 2025. Gerber expanded from 791 to 1,102 locations, adding 311 shops including the Joe Hudson’s acquisition. Classic Collision grew from 310 to 346 locations, while Caliber Collision increased from 1,829 to 1,863 and Crash Champions grew from 654 to 662 locations.
Several mid-sized MSOs expanded more aggressively. Brightpoint Auto Body grew from 13 to 36 locations after acquiring 23 shops, including 16 Stonewall/Maaco locations. CollisionRight increased from 103 to 128 locations, while VIVE Collision expanded from 53 to 72 locations.
Other growing operators included G&C Auto Body, which increased from 44 to 55 locations, Puget Collision, which grew from 54 to 64 locations and OpenRoad Collision, which expanded from 28 to 34 locations.
Private equity investment in collision repair remained active despite the slowdown. Three new firms entered the sector in 2025, bringing the total number of private-equity-backed consolidators pursuing acquisitions to 14.
Investors also began targeting smaller operators. Several firms pursued businesses with as few as one to three locations, reflecting limited availability of larger platform acquisitions.
Acquisition timelines also lengthened. Buyers conducted deeper financial reviews and more deals stalled late in the process when updated financial analysis showed weaker-than-expected performance or raised environmental or lease concerns.
Many potential sellers chose to delay transactions until financial results improved. The report notes that even small revenue changes can significantly affect valuations. A 10% decline in revenue at a $30 million MSO operating at roughly 15% EBITDA could reduce enterprise value by nearly 20%.
Automakers also continued expanding their role in collision repair. Tesla increased its company-operated collision center network to 60 U.S. locations in 2025, up from 49 the year before. These facilities typically combine collision repair with delivery and service operations and often operate multiple shifts.
The authors expect acquisition activity to increase in 2026 as more shop owners return to the market and buyers continue deploying capital. Consolidators, private equity investors and regional MSOs are expected to remain active acquirers.
Long-term industry pressures remain, including rising total-loss frequency, increasing repair complexity tied to advanced driver-assistance systems and higher total cost of repair. These factors, along with weather patterns, insurance rates and economic conditions, are expected to continue influencing repair volumes and consolidation activity.
