GCG’s Q2 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:
- The automotive aftermarket continued to evolve in Q2 2025 amid changing consumer behavior and macroeconomic pressures. M&A activity remained strong with renewed strategic and private equity interest.
- Q2 marked the strongest North American automotive aftermarket M&A activity in two years, with 31 deals driven largely by bolt-on acquisitions. Collision repair, component suppliers, and tech-enabled platforms led the way, as private equity remained active and strategic buyers prioritized efficiency amid ongoing inflation and rate pressures.
- Automotive Aftermarket public company valuations have normalized post-COVID, averaging 13.8x EBITDA and 2.6x Revenue over the past five years. As of Q2 2025, multiples remain 6.5%–15.4% below the 5-year average, but recent stability signals continued investor confidence in the sector’s long-term outlook.
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