GCG’s Q1 2025 Automotive Aftermarket Industry Update provides an overview of the latest trends in the sector, including recent performance, valuation multiples, and the state of the middle-market M&A environment.

Key findings include the following:

• Automotive aftermarket M&A activity rebounded strongly in Q1 2025, reaching its highest quarterly volume in two years. While major platform deals remained scarce, strategic and private equity buyers aggressively pursued bolt-on acquisitions to scale existing platforms in categories like collision repair, tech-enabled services, and specialty components.
• Amid persistent inflation and elevated interest rates, buyers are shifting toward value-oriented strategies, targeting businesses with operational efficiencies, stable margins, and recurring demand rather than speculative growth opportunities.
• Tech-enabled aftermarket platforms continue to attract premium valuations, reflecting their growing role in reshaping the industry. These companies benefit from strong public market performance and increased investor interest in scalable, data-driven service models.
• Although discretionary spending remains under pressure, early signs of recovery in Off-Road & Enthusiast segments suggest a potential rebound in consumer sentiment, particularly in areas tied to lifestyle and vehicle personalization.

Click here for the full update.

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