The Collision Center Industry in 2025: Strategic Shifts, Real Estate Value, and Preparing for What’s Next
The collision repair industry will continue to undergo rapid change in 2025. Driven by ongoing consolidation, strategic acquisitions, and evolving operational standards, this sector remains highly active even as economic factors and insurance trends put pressure on margins. For collision center owners, understanding where the market is heading and how to maximize the value of both the business and the property has never been more critical.
According to David Melton, Managing Director of Pointe Automotive, 2025 is shaping up to be a year in which preparation and strategic positioning will determine whether a sale yields full value or leaves money on the table.
“We’re working with more shop owners now than ever who are starting to think long-term—whether that means selling in the next year or setting up a plan to exit in five,” says Melton. “The market is still active, but the right buyers are being more selective, and the shops that are prepared are the ones getting rewarded.”
Recap of 2024: Consolidation Continued at Full Speed
Despite economic uncertainty in 2024—including inflation, a softening in claims volume due to milder weather, and increased uninsured driving—consolidators remained aggressive. Over 450 collision centers changed hands, with large MSOs like Caliber Collision, Gerber, Crash Champions, Classic Collision, and Joe Hudson’s leading acquisitions across the country.
Emerging regional consolidators such as Quality Collision Group and CollisionRight continued their expansion, focusing on clean, high-performing independents in strategic growth markets.
“We continue to see strong activity from buyers looking for regional coverage and consistent operations,” Melton explains. “Whether it's a single shop or a group of five to ten, well-run businesses are still commanding strong attention.”
Valuations Hold—But Expectations Are Higher
Valuations in 2025 remain healthy for the right businesses. Shops with organized financials, repeatable operations, and steady performance continue to attract premium buyers. But according to Melton, the bar has been raised.
“Buyers today want transparency. They want to see reliable earnings, a strong team, and a facility that doesn’t require major capex,” says Melton. “The days of top-dollar offers for under-documented operations are behind us.”
Owners who invest time in preparing their financials, documenting key metrics, and proactively cleaning up operational inconsistencies are consistently seeing higher multiples and more deal activity.
The Real Estate: A Critical (and Often Overlooked) Factor
Real estate is one of the most misunderstood elements of a collision center sale. Whether you plan to sell or lease the property, its structure can dramatically impact the overall value of the deal.
“In many transactions, the property is either under-leased or undervalued, and that can shrink the total value of the exit,” says Melton. “We help owners structure leases or prepare for a sale-leaseback that reflects true market value—and that adds leverage in the M&A process.”
In a sale-leaseback, the property is sold to an investor while the business continues operations under a long-term lease. This allows the seller to extract equity and control the business through closing. Alternatively, some owners choose to sell both the business and the real estate together—requiring a coordinated strategy to align both sides of the deal.
With interest rates stabilizing in 2025, investor demand for collision real estate with strong operators and long-term leases remains high—especially in secondary and suburban markets.
What’s Changing in 2025
This year, buyers are targeting smaller and mid-sized markets—areas with lower competition, more affordable labor, and long-term growth potential. Strategic acquirers are taking a measured approach, focusing less on rapid expansion and more on quality, infrastructure, and geography.
As a result, collision center owners who want to capitalize need to position early.
“Timing matters, but so does packaging,” Melton adds. “Owners who wait until they’re burned out or the shop is declining often lose leverage. The best exits we’ve seen are from shops that engaged early and made informed decisions with a clear process.”
Key Takeaways for Shop Owners
For collision shop owners considering a sale or long-term transition, 2025 presents a strong—but selective—market. Melton offers these top recommendations:
Get a valuation of both your business and your property—individually and together.
Prepare your financials. Make sure they are accurate, normalized, and ready for buyer review.
Understand your lease. Whether you plan to sell or hold, lease structure can impact valuation.
Engage experienced advisors who understand both the operational and real estate side of a collision sale.
“It’s not just about selling—it’s about maximizing what you’ve built,” says Melton. “We help shop owners do that by aligning their exit goals with real market data and investor expectations.”
About Pointe Automotive
Pointe Automotive is a nationally recognized M&A and real estate advisory firm serving the automotive retail and aftermarket sectors. Led by David Melton, a former dealership COO with over 40 years of industry experience, Pointe Automotive specializes in collision center sales, sale-leaseback transactions, and business transitions that unlock real value.
Licensed in all 50 states, Pointe Automotive supports business owners, brokers, and consolidators through every phase of a transaction—from valuation and deal structuring to lease strategy and closing.
For a confidential consultation or to learn more about current market trends, visit www.PointeAutomotive.com or call 423-499-9956.