For the past few weeks we have been analyzing the results of the Boyd Group Income Fund (Boyd). Boyd is the largest operator of collision repair facilities in the world by number of locations, and one of the top four in terms of revenues. Boyd is also a serial acquirer of other collision and glass services businesses. Founded in 1990 as a single location in Winnipeg, Canada, Boyd has grown to be the largest provider of collision repair services almost exclusively via acquisition, or buying other collision repair businesses.
Previously I spoke about the importance of developing new core competencies to compete in the new era of collision repair. We also discussed at length how a business owner can leverage the tools of corporate finance to drive systematic growth. Boyd is an example of a company that has effectively done both to become a world leader in collision repair and glass repair services.
The price and terms of acquisitions are always a hotly discussed topic in any industry, collision repair is no exception. While most transactions are shrouded in confidentiality and strict non-disclosure obligations, one benefit of having publicly traded companies active in the industry is that any transaction that is “material”, or something that may have a significant influence on the outcome of business operations, must be disclosed. While the details of the transaction are often not disclosed to protect competitive information, the major points of the transaction are listed.
This week we will look at the major transactions that Boyd has disclosed publicly between 2012 and 2014. You can access the 2014 annual report directly here, as well as previous annual and quarterly reports on Boyd’s Investor Relations page. We will also look at the numerous individual transactions that are aggregated in the annual reports. There are unique differences to note between MSO acquisitions and single location acquisitions. We will also draw some general conclusions regarding business pricing and terms. However, a critical disclaimer – the conclusions we draw will rely upon general industry financials, and are not necessarily representative of the specific business transactions. Regardless, using broad industry metrics allows us to draw general conclusions regarding acquisition trends in the industry.
Read more here.
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