Prosser, Washington, November 9, 2013 – With nearly constant headlines of multiple shop purchases and business consolidation, collision repairers at a crossroads are faced with two possible paths regarding the future of their shop: Acquisition of one’s shop by a larger, perhaps nationally-recognized brand, or bucking the consolidation trend in efforts to push through and thrive in an ever-shifting industry. With this in mind, SCRS provided SEMA attendees with this specifically designed session of the Repairer Driven Education (RDE) series to address both sides of the consolidation coin. “Competing in a Consolidated Marketplace,” held 3pm-5pm on Wednesday, November 6th and presented by Tim Ronak (AkzoNobel Coatings) examined current industry trends in the area of shop consolidation to provide insight and solutions to shops looking to hold onto their businesses and survive into the future. Owners looking to explore their options in the valuation and ultimate purchase of their business were afforded an equally valuable educational opportunity with “If I Knew Then What I Know Now – Lessons Learned From Selling My Shop” on Thursday, November 7 from 3pm-5pm, hosted by a panel of industry experts who provided insight on the process of selling their previous shops.
Ronak intrigued attendees by opening the presentation with information on current industry trends. While some of the data presented indicated a slight upturn in the financial state of the industry moving into the future, he cautioned attendees to tread very carefully when considering raw figures as a barometer towards selling one’s business. “There is a great deal of data out there, but so much is inferred that it’s difficult to determine what’s accurate and what’s not,” Ronak said; adding that figures on observable trends within the industry sometimes even contradict one another depending on the information source. “For example, the industry may be even larger than we thought.”
After sharing facts and statistics of the market from a consolidator’s point of view, as well as an overview of the “Big 5” dealer groups nationwide, attendees were offered insight into how being aware of the consolidation trends can be used to their advantage as they choose to remain single location operators. Above all, having a plan in place – regardless of whether that plan includes embracing the consolidation trend or choosing to eschew that model – is paramount.
“Lessons Learned From Selling My Shop” featured reflections from a panel of repair industry professionals who have traveled down the path of selling their shops:
- Aaron Clark (SCRS Past Chairman and former owner of Collision Solutions, sold to ABRA Auto Body & Glass)
- Mike Anderson (former owner of Wagonwork Collision Centers, sold to Pohanka Collision Centers)
- Pat O’Neill (former owner of 911 Collision Centers, sold to Caliber Collision Systems)
- Dan Bailey (former owner of A&B CARSTAR, sold to CARSTAR Franchise Systems)
Each panelist went through their own personal situations leading up to and following the sales of their business, as well as their takeaways on the experience in an informal, relaxed setting. Each panelist noted that, while the sale of one’s business is ultimately a business decision, it is an intricate one where personal relationships, plans for the future and detailed strategizing well beyond the actual close of the sale will come into play.
As Anderson imparted to the audience, though having one’s financials and emotions in check as they begin the sale process are equally crucial preparation tools, so too is the act of stepping back to evaluate the process itself – with the inclusion of a third party to offer unbiased feedback. “You need a good third-party agent to provide an objective voice to the process,” he explained. “It’s easy to get caught up in all the emotions of selling, so you need that objective voice in there to help keep the process on course. [Shop staff members] become like a family. These are people who, we’ve been to their weddings and watched them have their first child. You need somebody that’s going to be impartial so you don’t make decisions too rashly or emotionally.”
“The great information presented in these courses was put together with the intent to give a well-rounded look at both sides of an important trend that today’s business owners are faced with,” notes SCRS Executive Director Aaron Schulenburg. “While a place certainly does exist in today’s marketplace for independent repair facilities to shine and thrive, the fact remains that for some selling the business may be a more attractive option. Our goal in offering these two looks at the issue was to showcase the idea that all operators have choices, and to present all the options and solutions that do exist out there, no matter what direction a business owner decides to explore.”
About SEMA and the SEMA Show: The SEMA Show is a trade show produced by the Specialty Equipment Market Association (SEMA), a nonprofit trade association founded in 1963. Since the first SEMA Show debuted in 1967, the annual event has served as the leading venue bringing together manufacturers and buyers within the automotive specialty equipment industry. Products featured at the SEMA Show include those that enhance the styling, functionality, comfort, convenience and safety of cars and trucks. Additional details available at www.semashow.com or www.sema.org, (909) 396-0289.
About SCRS’ RDE Series: REPAIRER DRIVEN EDUCATION (RDE) series will feature over 21 seminar offerings, many of which are uniquely designed and being offered only at the 2013 SEMA Show. The series will be offered either as individual sessions, or as a package, and registrants will have the option to attend seven regular session seminars each day of the show. Each of the courses has been individually selected or crafted by SCRS because the content specifically focuses on information that is relevant to collision repair professionals and appeals to the diverse array of marketplace perspectives within the collision repair industry. Register at www.semashow.com/scrs.
About SCRS: Through its direct members and 40 affiliate associations, SCRS is comprised of 6,000 collision repair businesses and 58,500 specialized professionals who work with consumers and insurance companies to repair collision-damaged vehicles. Additional information about SCRS including other news releases is available at the SCRS website: www.scrs.com. You can e-mail SCRS at the following address: [email protected].
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