Acquisitions look set to occur
According to sources, the UK accident repair market is on the cusp of further major changes as acquisition market intelligence circulates.
bodyshop has learned that two work providers, in particular, have started to re-assess the relationship they have with their repair partners as acquisition observations heat-up.
The news follows private equity investment banker, Rex Green’s presentation at the IBIS Global Summit 2015, which predicted Carlyle’s purchase of Nationwide ARS was a sign of things to come within the UK, as consolidation of repair networks sweeps across the Atlantic from the US.
During his session, Rex highlighted how at present in the US, four consolidators – ‘the four horsemen’ – at present share 10% of collision repair revenue. However, in 10 years’ time Rex predicted that figure to be closer to 65% of revenue. In a self-proclaimed bold statement, Rex said, ‘Eventually they will do effectively all of the insurer funded repairs in the US.’
Rex suggested that consolidation of this magnitude may not take hold around the rest of the world, but if it doesn’t, in his opinion, it will because of regulatory, legal or cultural constraints that defy economics.
Turning his attentions to ‘capital flowing into collision’ Rex said, ‘The availability of private equity provides the jet fuel for consolidation. It’s a very exciting time in collision within the US and will be within other markets.’