Highlights from SEMA

Comments and observations after a week in Las Vegas at the MSO Symposium, CIC and SEMA

Everything is going up! 

·         The cost of parts 

·         Cycle times 

·         Total losses as a percentage of repairs 

·         Used car prices 

·         Rental car rates 

·         Miles driven 

·         Average speeds 

Everything seems to be up except attendance, available techs, and margins. 

Oh, a couple other things are up too. 

·         Interest in selling shops! 

·         Interest in acquiring shops! 

We talked with multiple MSOs that are aggressively expanding their footprints.  We talked with all the big acquirers who are accelerating their growth plans.  And we talked with individual shops and MSOs on the fence or already over the fence about finally exiting the business.  We expect 2022 will be a record year for M&A in the industry. 

Nothing will ever go back to normal.

What is normal anyway? 

Best quote of the week:  How can you tell if parts are American made or not?  If they are available, they are made in the USA! 

Coolest thing at SEMA. The LVCC Loop! 

Elon Musk’s Boring Company bored two tunnels from one end of the Convention Center to the other.  62 Teslas traveled through the tunnels, transporting passengers almost a mile in 2 minutes with a human driver (for now).  It saved our aching feet and intrigued our curiosity.  Eventually there will be 54 miles of tunnels across Las Vegas, along the Strip and all the way to the Airport. 

David Roberts, the Managing Director of Focus Advisors has been advising, buying and selling MSOs since 1997.  In the past 24 months, Focus has led more than $200 million in 14 separate MSO and single shop sales.  If you want to hear some frank advice about the industry, consolidation and how it may impact you, contact David Roberts at 510 444 1173 or david.roberts@focusadvisors.com.  We will set up a mutually convenient time to chat. 

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