There has been significant consolidation activity in the collision space. Many independent owners of collision centers have sold to Caliber, Gerber, Crash Champions, Classic Collision, Joe Hudson’s, and so forth. Similarly, we are beginning to see some movement from larger strategic players and private-equity funds to roll up the highly fragmented ADAS calibration operators that grew up over the past decade – or even the more recently-established ones!

Below is a practitioner’s guide to the M&A landscape—pulled from our recent conversation with Philip Brossy (ADAS Safe), Darren Xu (Questline Capital) and Warren Xu (ADAS Depot), plus the latest deal data and market commentary.

1. Why the land-grab is accelerating

Structural driver	What it means for operators
MSOs looking for growth	Repair orders are flat, so MSOs chase the one adjacent line still growing—ADAS calibration.
Private equity dry powder	Private equity firms are sitting on significant dry powder to acquire more businesses. Those that invested in the collision space are looking at spaces other than just collision and may start to dip their toes into ADAS calibration.
Increased awareness	The financial markets are beginning to understand the positive secular forces in ADAS calibration. This is one of the few areas of growth within the automotive aftermarket industry, after all.
Scale economics	CEOs of MSOs and other strategics, along with private equity buyers, believe that scale matters. Scale pays: every extra van spreads software, training, and HR over more revenue—so buyers pay real money for independents.

2. Who’s buying? Three active buyer pools

Buyer type	Recent activity
Multi-Shop Operators (MSOs) (e.g. Caliber/Protech)	We are hearing of Caliber making offers for large, established vehicle diagnostic and ADAS calibration businesses.
Strategic aftermarket giants (e.g. LKQ / Elitek)	LKQ bought Elite Electronics (2019) and Greenlight Automotive (2021) to expand Elitek’s mobile diagnostics footprint. elitekauto.comrepairerdrivennews.com
Private-equity platforms (e.g. ADAS Safe)	ADAS Safe is one such investor-backed platform that is acquiring other ADAS calibration centers.

3. Valuations: what sellers are seeing on signed LOIs

Philip’s real-world deal funnel matches broader market comps. Note that EBITDA is a proxy for cash flow. Below is what we are hearing for valuations

	Multiple range*
Local player (1–7 vans, or one or two static centers, < $750k EBITDA)	3.0x – 4.0x
Core regional player (5–15 vans, or multiple large static centers, $750k–$2mm EBITDA)	3.5x – 4.5x
Large regional player ($2-5mm EBITDA)	4.0x – 5.0x

*Multiple of cash flow with owner’s compensation included

4. Cash today vs. “second bite” tomorrow

Different buyers will have unique deal structures. The MSOs and the strategics may offer all-cash, which often closes fastest and offers certainty, but it caps your upside. In addition, the seller may not have a say in how operations are run, may be out of a job, and the culture of the company may shift. 

Example:

A shop doing $1 m EBITDA selling at 4× with 30 % rollover nets $2.8 m today; if the platform flips at 9×, that rollover is another $2.7 m. Total: $5.5 m, almost double the all-cash route

PE-backed roll-ups like ADAS Safe can offer more flexible deal structures, including offering equity. ADAS Safe’s deal structure might include cash at close, equity rollover into the new holding company, and earn-outs tied to the business’ performance thereafter. Because the PE platform seeks a larger exit at 8-10x EBITDA to a major strategic or IPO buyer, the rolled equity can be worth 2–3x the initial check if growth targets are hit.

5. Process sprint: from first call to funding

In the interview, Philip walks through his process of buying an ADAS calibration and vehicle diagnostic business. 

1. Intro / chemistry call – Buyer and seller swap NDAs, and swap references both ways (good buyers should ask for it).
   
   
2. Non-binding Letter of Intent (LOI) – Buyer submits an LOI with headline price, structure, exclusivity period, and target close date.
   
   
3. Confirmatory diligence (30–90 days) – Buyer conducts diligence on the following items that the seller will be asked to provide, among other items:
   
   
• Clean Profit and Loss statements (P&Ls)
  
  
• A breakdown of revenue by customer channels (e.g. MSOs, independent collision centers, automotive repair, etc.)
  
  
• Payroll and employee census
  
  
• Job volume trends and pricing
  
  
• A review of all company operations
  
  
4. Definitive agreements & closing – Buyer and seller sign the asset purchase agreement and close the deal.
   
   
5. Integration – back-office consolidation (HR, operations, etc.) happens fairly quickly. In ADAS Safe’s case, front-end customer branding often stays local to preserve referral goodwill.
   
   

6. Post-close branding & culture

MSOs are likely to immediately flip signage and use their operations manual. Note that in the case of Elitek buying Greenlight Automotive, they changed the acquired assets to Elitek. 

ADAS Safe says it keeps local trade names in markets “where a handshake still matters.” In ADAS Safe’s model, operators retain P&L input; and can tap into a six-month on-site training center in Jacksonville, FL for new technicians. 

7. The strategic edge of software and organized operations

A highly organized workflow is a differentiator. Be sure to highlight and document all of your standard operating procedures. Buyers generally prefer operators who leverage software, which demonstrates to them a level of sophistication that scaled players have. In addition, these softwares likely improve your operations and your cash flow, which will ultimately augment the sales price. Some software that can have an immediate impact on your operations include ADAS calibration scrubbing software, calibration documentation software, OEM software, invoice generation and billing software, Alldata, and so forth. 

Reach out to us at ADAS Depot if you have any questions about your software options within the space.

8. Key takeaways for owners considering a sale

1. Benchmark early. Track EBITDA accurately and keep a stable operation leading up to outreach. Even in a sale process, don’t take the hand off the steering wheel; make sure operations continue to perform.
   
   
2. Invest in documentation. Cloud-based calibration reports and before/after images increase professionalism to the buyer.
   
   
3. Size still matters. Add a second or third van or co-located static bay if you can – it can show growth which is always attractive to the buyer.
   
   
4. Vet the buyer’s track record. Call former sellers to understand post-close turnover and earn-out success rates.
   
   
5. Negotiate structure, not just price. A 70% cash / 30% rollover at 4.0x can out-perform a 100% cash deal at 4.5x if the platform exits well.
   
   

Ready to explore options?

If you operate an ADAS calibration or mobile diagnostics company and want to understand your strategic alternatives, feel free to reach out:

Philip Brossy, Founder – ADAS Safe
✉️ philip@adas-safe.com

Also, please reach out by email at alvin@adasdepot.com if you have any other market intel you’d like to share.

Whether you seek a full exit or a partnership that lets you share in a bigger future payday, consolidation momentum is unlikely to slow. Knowing the rules of the game—and the players at the table—puts you in the best position to capture the value you’ve built. Here at ADAS Depot, we are here to support and advocate for independent ADAS calibration and diagnostic companies.