Focus Advisors mid-year review: Consolidation continues with private equity firms most ‘aggressive’

According to a new article by Focus Advisors, shop consolidation continued through the first half of this year, though at a slower pace.

2025 Mid-Year Review: Consolidation Continues Despite Headwinds 

The total number of shops acquired or opened by consolidators and market-leading MSOs was 223, down 35% compared to the same period in 2024 (343), the article says. According to Focus Advisors’ data, the decline was concentrated among three of the Big 5 — Caliber, Crash Champions, and Joe Hudson’s — while Gerber was flat year-over-year, and Classic Collision increased openings.

“That slowdown reflects a variety of factors: cash-flow constraints, softer earnings, seller pushback on valuation expectations, and possibly the overhang of Caliber’s anticipated IPO,” the article states. “Meanwhile, mid-sized regional buyers acquired or opened 4.5% more stores in H1 2025 vs. H1 2024, even as the Big 5’s combined openings plus acquisitions fell 60.3% year over year.”

Focus Advisors told Repairer Driven News the latest count for Gerber U.S. locations is 875, and that its recent announcement about opening its 1,000th location included Boyd and Assured, which are in Canada.

When asked about overall shop counts last week, Senior Associate Madeleine Roberts Rich shared with RDN that Focus Advisors estimates there are 30,000 collision shops in the U.S., around 23,000 of which are single shops.

She added that there are 15 consolidators: Caliber, Gerber, Crash Champions, Classic Collision, Joe Hudson’s, Quality Collision, CollisionRight, Kaizen, VIVE, OpenRoad, Puget, BrightPoint, Chilton, Driving Force, and Authentic Auto Body.

“As of late June, our estimates indicate they [consolidators] have 4,461 shops, or 14.8% market share by shop count,” Rich said. “We estimate that there are well over 800 independent MSOs (non-consolidators) and they have more than 2,631 locations between them.”

Focus Advisors also says private equity firms continued their “aggressive move” into the industry throughout the first half of the year.

“Private equity (PE) interest in the industry is easy to understand: car accidents, hail damage, and other collision repair needs are non-discretionary, and insurers typically foot the bill,” the article states. “The industry is sufficiently large, suitably fragmented, and sustainably profitable… Many also believe the industry is recession-resistant, and AI will not be replacing body techs anytime soon. Even if claim counts dip from economic shifts or ADAS technology, rising revenue per repair — driven by more complex vehicles and continued increases in parts and labor costs — keeps collision repair an appealing, resilient investment for private equity.”

The article adds that Focus Advisors knows of more than 130 PE firms that have expressed interest in entering the industry, and noted that Tesla’s expansion of its national body shop network is beginning to create additional competition for collision shops in some larger markets. For example, Tesla opened five new corporate shops this year, most of which are in California, according to the article.

Focus Advisors says, “While the Big 5 largely stayed quiet during the first half of 2025, history suggests this won’t last.”

“The Big 5 now operate at least 4,019 locations,” the article says. “Collectively, they hold 13.3% of shop market share and approximately 31.7% of revenue market share nationwide… Gerber recently acquired an eight-location MSO in Northern Virginia and reiterated its goal of adding 400 more sites in the coming years through both acquisitions and new developments.”

In February, Focus Advisors said it anticipated continued significant consolidation this year.

Rich wrote in a report at the time that the “sheer amount” of private equity capital that entered the industry within the last 15 months strongly supports the trend.

“What was clear in 2024 is that the COVID and post-COVID days of double-digit labor rate increases, large amounts of WIP, and 75% margins on ADAS sublet are no more,” she wrote. “There is a return to normalcy, and a specialized strategy will be necessary to compete.”

Looking back at last year, Rich noted that both MSOs and single shops were forced to adapt to cost challenges, including the total cost of repair (TCOR) rising by 3.7% to $4,667, according to CCC, and an increase in miles driven of only 0.6% compared to 2019.

In its latest article, Focus Advisors notes that aging fleets, rising repair costs — especially for EVs and ADAS-equipped vehicles — and declining used car values are “collectively eroding repairable volume, tightening margins, and dampening growth for both independents and MSOs.”

It also says the collision repair industry continues to face elevated total loss rates shrinking the pool of repairable vehicles, plus in Q1, the total cost of repair rose just enough “to keep insurers and consumers cost-conscious.”

“For both single-shop independents and large MSOs, these factors — combined with persistent margin pressure from insurers and ongoing staffing challenges — have made the first half of 2025 a period of renewed focus on efficiency and disciplined operations,” Focus Advisors wrote.

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