Automotive aftermarket follows cyclical pattern of industry consolidation

Bruce Adams, managing editor for Aftermarket Business World, wrote a blog, “Aftermarket industry consolidation continues in cyclical pattern.”

All segments of the auto aftermarket, – parts distributors, paint distributors, software providers and auto body repair shops – are consolidating. This is happening because when consolidations, are done correctly, acquiring companies enjoy competitive advantages due to their larger size.

In addition, strategic acquisitions increase the value of the business beyond the cost of the acquisition. This is known as an accretive acquisition.

The article says there are four stages of consolidation – fragmentation, acquisition, expansion and maturity.

Click here to read more about the aftermarket consolidation and the cyclical pattern of acquisitions.

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