July 27, 2020—The third quarter proved to be a game changer and the collision repair industry is now seeing a return to the high levels of buying interest experienced in 2019, according to a press release from Focus Advisors, a mergers and acquisitions advisory.
Collision operators are estimating a full return to 2019 levels by 2021, the press release indicates. The lingering pandemic leaves a lot of uncertainty, but according to the trends, the market for collision business buying is starting to bounce back.
"Today we're seeing multiple bidders and attractive LOIs, a big change from just a few months ago," noted Focus Advisors' managing director, David Roberts. "Three months ago, both industry revenues and M&A interest were severely depressed. Operators were pausing, not knowing how far down revenues might go and how long they would stay depressed. Buyers were pausing as the tumult caused by the COVID-19 virus was creating enormous uncertainty."
