KBS - Automotive Repair - Market Insight

PRIVATE EQUITY ACTIVITY

Private equity 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, £2 million to £10 million 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.