While I was at SEMA and AAPEX, I had multiple meetings with investors and private equity groups that are very interested in the automotive aftermarket. These groups have been watching the industry closely in the past number of years, and see a lot of potential. The collision segment (collision repair, parts distribution, paint distribution, technology providers, etc.) of the automotive aftermarket is undergoing rapid change due to structural, economic and technological forces. But these forces are impacting the entire automotive industry at large. These investors are looking to understand this change, and in the process, identify and back entrepreneurs that are taking advantage of these changes.
A few weeks back when I was at NACE, I interacted with a number of investors and private equity firms at the conference. They were there to gain a better understanding of the industry. At SEMA AAPEX that trend continued. I met with folks from numerous private equity firms all interested in identifying opportunities to invest in the segment. Some firms had recently raised their first round of investment capital, and having heard of the success of other private equity firms are interested in the space. Other firms are already in the space, and want to invest further. Still others are interested in the technological change we are seeing in the industry, and are pursing investment opportunities more akin to venture capital rather than traditional private equity investing.
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