Market insight – The automotive repair sector
A period of intense M&A activity is happening in the UK automotive repair sector, driven by a combination of private equity interest and strategic consolidation.
Our focus for this article is on the accident/collision repair sub-sector, in which larger national groups are actively acquiring regional operators to build scale, streamline operations and offer end-to-end solutions to insurers and fleet providers. Among the most prominent players are Steer Automotive, backed by Chiltern Capital, and Activate Accident Repair, both of whom are pursuing aggressive buy-and-build strategies.
With most deal activity focused on businesses valued under £100m, small to mid-sized operators with one to ten sites are in high demand, offering a compelling window of opportunity for owners seeking an exit.
Current landscape
Repair complexity is rising rapidly as new vehicle technologies become standard. ADAS, radar systems, and sensor-based features have added new layers to even basic repairs, requiring workshops to invest in specialist tools and recalibration capabilities.
Simultaneously, the accelerating adoption of electric and hybrid vehicles is pushing operators to train technicians in high-voltage systems and equip facilities with EV-safe infrastructure. Supply chain challenges, particularly for OEM parts, have driven up costs and extended repair times.
These pressures are compounded by insurers’ push for efficiency, which has led to a preference for repairers who can deliver short cycle times, digital claims handling, and wide geographic coverage. As a result, multi-site operators with advanced capabilities are becoming increasingly attractive acquisition targets.
Sector trends
The market has rebounded strongly post-Covid, with accident volumes now exceeding pre-pandemic levels.
Increased repair complexity
This is shaped by advances in vehicle technology, increasing operational complexity and shifting expectations from insurers and consumers alike. One of the most notable developments is the growing complexity of vehicle repairs due to the integration of sophisticated technologies such as Advance Driver Assistance Systems (ADAS), sensors, radar systems and onboard diagnostics, which are now standard across mainstream vehicles. This means that even seemingly minor collisions can trigger intricate repair processes that demand specialist knowledge, precise recalibration, and investment in advanced diagnostic equipment. Workshops that lack these capabilities risk being excluded from insurer networks and falling behind the curve.
Electric vehicle (EV) and hybrid repair readiness
The rapid shift towards EV and hybrid models is placing new demands on repairers. EV and hybrid models require entirely different protocols for diagnostics, battery handling, and structural repairs, particularly when high-voltage systems are involved. As adoption of these vehicles continues to accelerate, driven by both consumer preferences and government mandates, repairers must invest in technician training, safety accreditation, and dedicated EV repair bays to remain competitive. For many insurers and fleet operators, EV-readiness is no longer a bonus but a baseline requirement when allocating repair volumes.
Rising repair costs
At the same time, repair costs are rising across the board. The combination of global supply chain challenges, extended lead times for parts, and rising labour costs is pushing up average repair values. High-tech vehicles take longer to assess and fix, particularly when recalibration or component replacement is required. This has led to increased cycle times, more downtime for end users, and growing pressure on bodyshops to operate more efficiently under tight margins. These cost pressures are forcing many independent repairers to rethink their operations or consider joining larger groups with stronger purchasing power and process optimisation tools.
Insurer-led efficiency push
Insurers, under their own cost and efficiency pressures, are also playing a decisive role in reshaping the repair landscape. Many are actively consolidating their networks of approved repairers, reducing the number of operators they work with and concentrating volume on those who can provide national or regional coverage, faster turnaround, and seamless digital integration. This means bodyshops which offer streamlined claims processing, digital estimating, real-time updates, and customer portals are increasingly winning insurer contracts. Conversely, smaller businesses without these capabilities are being squeezed out or pushed toward acquisition.
Consolidation of independents
As a result of these market dynamics, consolidations continue at a rapid pace. Private equity-backed platforms and large strategic operators are actively acquiring smaller independents to expand their geographic footprint, boost insurer appeal, and drive profitability through acquisition. For owners of well-managed but resource-constrained repair shops, this consolidation wave offers both opportunity and urgency – a chance to exit on favourable terms before operational demands outpace their capacity to compete.
Key drivers and motivations for acquirers
Strategic and financial buyers are motivated by several critical factors.
Insurer-approved status and long-term contracts: Chief among these is access to insurer contracts that guarantee recurring, high-volume work.
Geographic footprint and site density: Many insurers now require national or regional coverage from their repair partners, prompting acquirers to pursue bolt-on acquisitions that can help expand footprint quickly.
EV and ADAS repair capability: In addition, workshops with demonstrated capabilities in EV repair or ADAS recalibration are in high demand, as these skills are in short supply and increasingly necessary for compliance and customer satisfaction.
Strong operational efficiency: For many buyers, acquiring skilled labour through a transaction is more efficient than recruiting in a talent-scarce environment.
Investment in technology and systems: Technology and systems are another key draw with repairers, with modern equipment, digital workflows, and real-time tracking capabilities representing scalable, efficient platforms for future growth.
EBITDA multiples in the automotive repair sector
In the current market, EBITDA multiples for automotive repair businesses generally range between 5x and 8x, with transaction values typically falling under the £100m mark.
Several factors influence where a business falls within this range. Larger, geographically diversified operations with strong insurer relationships, with a robust digital infrastructure, tend to command higher multiples. Equally, businesses with certified EV and ADAS capabilities are seen as future-ready and therefore more valuable.
Conversely, single-site or legacy operations without digital integration or insurer contracts may achieve lower multiples due to the perceived risk and higher transition costs involved for the buyer.
What drives higher valuations and multiples?
Valuations in the automotive repair sector are increasingly influenced by a business’s ability to demonstrate long-term resilience, scalability, and specialisation.
Buyers place a premium on operators that exhibit a strong track record of financial performance, underpinned by robust margins and consistent cashflow. Businesses that have proactively invested in advanced repair technologies, EV infrastructure, and compliance-led capabilities such as ADAS calibration tend to command higher multiples, as these offerings represent barriers to entry and sustainable competitive advantages.
Furthermore, acquirers value strong leadership teams, well-established operational processes, and the ability to integrate with larger platforms without significant disruption.
In today’s market, premium multiples are awarded not just for size or location, but for forward-thinking, systemised businesses capable of delivering both volume and quality in a rapidly evolving repair landscape.
Which factors drive growth in the UK automotive repair industry?
Several structural and market dynamics continue to fuel growth in the accident/collision repair sub-sector of the automotive repair industry. A significant driver is the rebound in vehicle use following Covid-19, which has led a resurgence in accident volumes.
Access to insurer contracts
One of the most significant growth drivers in this sector is access to insurer contracts that require extensive regional or national coverage. Insurers increasingly prefer to work with repair networks that can offer consistent service standards, faster turnaround times, and digital claims integration across wide geographies. This has made businesses with multiple sites and broad coverage highly attractive, especially those with long-standing relationships and approved status with major insurers. Such contracts provide predictable, high-volume work streams that underpin stable revenue and encourage strategic acquisition interest.
EV-ready and ADAS-capable workshops
The evolution of vehicle technology has made EV and ADAS repair capabilities critical to long-term business viability. Acquirers are actively targeting repairers who have invested in EV-trained technicians, high-voltage safety infrastructure, and specialist ADAS calibration equipment. These facilities are not only better aligned with the demands of modern vehicle repairs, but are also more likely to meet the technical and safety standards increasingly expected by insurers, manufacturers and fleet operators. The ability to repair technologically advanced vehicles is now a key differentiator in the marketplace.
Skilled labour acquisition
With the sector facing a chronic shortage of qualified repair technicians, skilled labour has become a valuable and scarce asset. Businesses that have successfully retained or trained experienced staff are in high demand from buyers looking to address their own workforce challenges. In many cases, acquiring a business also means acquiring a skilled team. This trend has made talent acquisition through M&A a strategic imperative, rather than simply a by-product of scale.
Technology uplift
Legacy operations are increasingly being replaced by modern, digitally integrated repair centres equipped with advanced diagnostic tools, workflow automation, and customer communication platforms. These technology-driven businesses are more efficient, deliver better customer experiences, and are more capable of integrating with insurer and fleet claims systems. For acquirers, the uplift provided by modern infrastructure not only enhances operational performance but also offers scalable growth potential. The ability to digitise and streamline the repair process is fast becoming a baseline expectation across the sector.
Insurer influence and revenue synergies
Insurer influence continues to play a defining role in shaping M&A activity. Strategic buyers are particularly focused on repair businesses already embedded within insurer-approved networks, as these offer immediate access to repair volumes and established revenue streams. Joining such a network typically involves meeting rigorous service, turnaround, and technology standards, criteria that insurer-approved repairers have already fulfilled. As a result, these businesses offer instant strategic value and smoother integration post-acquisition.#
Integration of family-run independents
Finally, many growth-focused buyers are targeting well-established, family-run independents that may lack the scale or digital infrastructure to compete independently in a rapidly evolving market. These businesses often come with strong reputations, loyal customer bases, and reliable workflows, making them ideal acquisition targets. By integrating into larger, more sophisticated platforms, these independents gain access to better systems, supply chain efficiencies, and insurer relationships, while the acquiring groups benefit from immediate local market presence and increased operational capacity.
What types of businesses are strategic acquirers pursuing in this sector?
Buyers, whether strategic or financial, are targeting specific business profiles that align with their growth strategies.
Multi-site operators
Multi-site operators that can provide regional or national coverage are especially sought after due to their ability to service large insurer accounts.
Insurer-approved repairers
Repairers that are part of insurer-approved networks or hold direct repairer status with key insurance companies are valued for their recurring revenue and stability.
EV & hybrid specialists
Workshops with electric vehicle and hybrid servicing capability, including high-voltage training and specialised equipment, are considered essential in today’s landscape.
ADAS calibration centres
Similarly, businesses that offer ADAS recalibration services are increasingly attractive, as these features are now present in most modern vehicles.
OEM-certified bodyshops
Operators with OEM certifications from premium manufacturers such as Tesla, Jaguar Land Rover or BMW can command premium pricing, enhancing margins and valuation.
Smart repair providers
Small/Medium Area Repair Technique (SMART) repair providers, who offer cost-effective cosmetic solutions, are also gaining popularity.
Digitally integrated businesses
Finally, businesses that have fully integrated digital claims systems and customer portals are ahead of the curve, offering efficiency, transparency, and scalability.
Private equity activity
PE interest in the sector continues to grow as investors are attracted by the industry’s recurring revenue, essential nature, and clear potential for platform growth.
The market remains highly fragmented, making it ideal for buy-and-build strategies. PE firms are particularly drawn to businesses with predictable, contract-based income from insurer and fleet relationships, as well as those with modern infrastructure that can support operational scaling.
Many investors see further upside in digitising operations, improving throughput, and enhancing sustainability. For example, Chiltern Capital’s investment in Steer Automotive has underpinned the creation of a market-leading consolidator.
Investment targets typically include businesses with 3–20 sites, £2m to £10m in EBITDA, strong insurer partnerships, and scalable systems.
Other active or potential investors include Livingbridge, LDC, Inflexion and Cairngorm Capital, all of whom have a track record of backing service-based, fragmented industries with long-term growth prospects.
Which companies has KBS Corporate sold in this sector?
Copperwaite Fleet Management acquired by Mitsiland
Copperwaite, a vehicle repair and testing specialist based in Keighley, was sold to automotive service and repair company Mitsiland.
Service and repair specialist sold to Dack Motor Group
A large Northamptonshire-based, Ford-approved operation was sold to Dack Motor Group, which has branches across the Midlands and East of England.
Car Care Service Centres sold to investment firm
Devon-based Car Service Centres, established in 1985 and with a large client base throughout the South West of England, was acquired by an investment firm with ambitious growth and expansion plans.
Key acquirers and investors in this sector
Steer Automotive Group
• Backed by: Oakley Capital
• Strategy: Aggressive buy-and-build platform with over 90 sites across the UK
• Notable acquisitions: ARC Group, Artis Accident Repair Centres, IRG Group
• Focus areas: EV and ADAS repair capability, long-term insurer contracts, OEM certifications
Activate Accident Repair
• Group: Part of Activate Group (including Motor Repair Network, Motor Assist)
• Expansion strategy: Organic growth and bolt-on acquisitions
• Focus areas: Technology-enabled repair processes, high-volume throughput, strategic national presence
Lookers, Arnold Clark and Other Dealership Groups
• Role: Strategic acquirers of repair centres to support aftersales, used-vehicle prep, and warranty work
• Strategy: Acquisition of bodyshops to internalise repair functions and improve operational efficiency
Livingbridge, LDC, Inflexion (Investor Interest)
• Reputation: Known for backing service-oriented and fragmented sectors with high consolidation potential
• Likely activity: Platform investment, secondary buyouts, and operational scaling through digital transformation
Cairngorm Capital
• Focus: Trades, services, and multi-site operating platforms
• M&A interest: Likely to enter the market through acquisition of scalable, insurer-aligned repair groups with national potential.