Morgan Business Sales maps Australia’s automotive services M&A market

Morgan Business Sales has published a 2026 overview of Australia’s smash repair and automotive parts sectors, highlighting transaction momentum, labor shortages, and valuation gaps. The report points to an increasingly active market for institutional buyers, owner-operators, and investors as vehicle complexity and consolidation pressures rise.

Why it matters: - Australia’s smash repair and automotive parts businesses are facing rising consolidation pressure as institutional buyers target a fragmented market. - The report says the sector’s valuation now depends heavily on insurer relationships, technical certifications, and scale. - Workforce shortages and rising vehicle complexity are pushing more owners toward sale discussions.

What happened: - Morgan Business Sales released its 2026 M&A overview of Australia’s smash repair and automotive parts sectors. - The full report is available free to business owners, operators, and investors active in the automotive services sector More information. - Morgan Business Sales is a licensed business brokerage focused on mid-market mergers and acquisitions across Australia.

The details: - The smash repair sector generated an estimated $9.6 billion in revenue in FY2025–26. - The sector includes 18,889 registered businesses, most of them owner-operated single sites. - Australia’s vehicle fleet exceeds 22 million registered vehicles and drives about 260 billion kilometres annually. - Australia’s broader automotive industry contributes more than $40 billion to GDP each year. - The automotive aftermarket parts market was valued at about $12 billion in 2024. - More than 130 private equity firms globally had expressed interest in entering the collision repair sector as of 2025. - Bain Capital made an unsolicited $1.83 billion bid for Bapcor in mid-2024, representing a 23.9% premium, and the offer was rejected. - AMA Group raised $125 million in July 2024. - AMA Group acquired Hondat Smash Repairs in March 2025 and Bodyline Crash Repairs in May 2025. - AMA Group also renewed its agreement with Suncorp, adding 12 locations and an estimated 40,000 annual repairs to its network. - Independent single-site operators without insurer panel relationships are transacting at EBITDA multiples of 2.0 to 3.5 times. - Businesses with insurer preferred repairer status trade at 3.0 to 5.0 times EBITDA at the single-site level and 4.0 to 6.0 times across multi-site portfolios. - Shops with prestige, electric vehicle, or advanced driver assistance system certifications command 4.5 to 7.0 times EBITDA. - Specialist EV and ADAS parts operators are achieving 5.0 to 8.0 times EBITDA. - The report identifies insurer preferred repairer panel status as the most consequential valuation driver in a transaction. - A Melbourne-based multi-site operator with six locations and $2.4 million in gross profit was successfully sold, showing demand for scaled, insurer-aligned assets. - The total loss rate for motor claims reached about 24% in the first quarter of 2025. - The average age of the national vehicle fleet climbed past 10.1 years. - ADAS technology and electric vehicles are splitting the market between high-technology shops and traditional workshops. - Older owner-operators are accelerating exit planning, citing labour scarcity and technology complexity. - The automotive industry is short about 40,000 workers, including 27,000 qualified technicians and 13,500 apprentices. - Forty-seven percent of automotive workshops are actively hiring technicians. - Roughly one in two workshops lacks at least one qualified repairer. - The panel beater trade was added to the national Skills Priority List in 2024. - Motor Vehicle Parts Retailing generated $7.1 billion in revenue in FY2024–25. - The dismantling and used parts wholesale segment produced $1.7 billion and is growing at a 4.5% compound annual rate. - The broader aftermarket parts sector is projected to grow at a 4.2% CAGR through 2028.

Between the lines: - The report suggests the market is separating into premium businesses with technical depth and weaker shops facing lower prices. - Labour shortages and certification requirements are raising the value of businesses that can service newer vehicles. - Consolidators appear to be pursuing scale, insurer access, and capability breadth rather than simple footprint expansion.

What's next: - The report expects continued buyer interest as ageing vehicles, higher repair complexity, and a shortage of skilled workers support transaction activity. - Morgan Business Sales says business owners, operators, and investors can contact the firm for a confidential discussion by phone, email, or through its website. - The report points to continued growth in aftermarket parts through 2028 as the fleet ages and repair demand remains elevated.