KBS - Automotive Repair - Market Insight

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.