Profile
Number of Shops: 3
Revenue: $14.7mm
Location: Jackson, MI
Age of Business: 36 Years
Outcomes
Multiple strong offers enabled the family to choose the right acquirer and terms for them.
3-week time to go to market with materials.
Family in the business now have new career opportunities within a much larger, growing company.
Background
Founded in 1988 by Phil and Barb Tripp, Tripp’s Collision Centers grew from a part-time high school job into a multi-million dollar business at the heart of its community. Over 36 years, the Tripp family expanded to three locations, including Lansing and East Lansing, and built a reputation for high-quality auto repair and exceptional customer service. With three generations involved in the business, their family-centered approach became a cornerstone of their success.
As Phil approached retirement, he sought representation from an experienced M&A partner to help secure the best outcome for himself and his family.
I’m going to be honest; I didn’t have much experience with selling a business—it was all new to us. Focus Advisors guided us through the options, whether I’d need to stay on or invest, and explained how deals come together. I was happy with how they structured everything; it was exactly what I wanted.”
Phil Tripp, owner of Tripp’s Collision
Engaging Focus Advisors
After meeting at the 2023 MSO Symposium, Focus Advisors partnered with Phil to conduct a comprehensive analysis of Tripp’s Collision’s financials and business practices. The business had recently seen two months of record-breaking sales, driven by the success of a newly-ramped location.
To present the business most effectively to potential buyers, Focus Advisors performed a detailed financial reconstruction and analysis and developed a Confidential Information Memorandum (CIM) that described the business itself, highlighting many details, not least its recent performance and future growth potential.
“We discussed every single expense, and [Focus Advisors] identified what buyers would care about. Their adjustments didn’t just improve our EBITDA, they helped us see our business through the eyes of an acquirer.”
Phil Tripp, owner of Tripp’s Collision
Some value-creation factors that Focus Advisors incorporated into the go-to-market materials were: (i) identifying multiple adjustments to EBITDA including a paint pre-bate amortization, (ii) rents and leasing structures to increase cash flows and to optimize the real estate value, and (iii) modeling the impacts of a new insurance contract that Tripp’s was negotiating at the time.
Once the materials were ready, Focus Advisors then presented Tripp’s Collision Centers with a list of 20 potential buyers or “targets” consisting of nine national and regional consolidators and 11 private equity firms actively ready to invest in an MSO. Once the Tripp family approved the materials and the approach, Focus Advisors started approaching the approved targets – all of whom were under non-disclosure agreements – with the materials. This started the competitive bidding process and resulted in several offers.
Phil’s priorities extended beyond just valuation. With multiple family members actively involved in the business, ensuring they had career opportunities post-sale was another key priority. Focus Advisors aligned the sale strategy with these goals, emphasizing the sons’ importance to Tripp’s’ operations when marketing to potential buyers.
“My parents, Phil and Barb always ran their business as more than just a body shop; they try to give back to the community first and were recent recipients of an award from the Chamber of Commerce. The most overarching priority was going with an acquirer that would still provide that continuity in the community."
Jeremy Tripp, the owner’s son and general manager of Tripp’s Collision
Our Process & Approach
Focus Advisors brought to the table industry expertise and a proprietary network of buyers, crafting a strategy to maximize Tripp’s’ value while maintaining strict confidentiality. Their approach included:
Providing tailored outreach by reaching out to 11 private equity firms and nine strategic buyers that were interested in collision repair in Michigan and that were most likely to bid.
Identifying strategic adjustments to EBITDA. This involved carefully refining financials to appeal to top-tier buyers, including recalibrating some personnel costs and corporate overhead expenses. These adjustments were all thoroughly documented and presented in the go-to-market materials to facilitate offers from buyers and to expedite the Quality of Earnings process during due diligence.
“Chris Lane was great. He always answered the phone, even when we called at 6 or 7 at night, and I’ll say he never complained once. One time, the five of us—me, Chris, Luke, Barb, and my dad—spent 10 hours on the phone dealing with lawyers and other stuff. Chris did a great job. He helped explain things that didn’t make sense to us—whether it was legal speak or just breaking it down into lay terms."
Jeremy Tripp, the owner’s son and general manager of Tripp’s Collision
Focus Advisors worked with the Tripp family to understand the unique strengths of their business and to articulate those strengths in the CIM. One example of how Focus Advisors presented these strengths was by demonstrating that Tripp’s’ recent agreement with a large insurer was evidence of evolving insurer relationships. This stoked interest from buyers who prefer a Direct Repair Program (DRP)-oriented culture.
Results
Focus Advisors’ efforts paid off. The final offer exceeded Phil’s expectations, with the winning bid by CollisionRight coming in significantly higher than the lowest offer. This deal included a favorable long-term lease, ensuring steady rental income and an improved real estate valuation for the Tripp family’s properties.
CollisionRight was originally hesitant to invest in an operation that didn’t have a culture of supporting DRPs. But Focus Advisors was able to allay those concerns by highlighting a new relationship they were negotiating with a large carrier, so CollisionRight eventually made a winning offer.
"I would just echo—I think that is true going into all facets—not only understanding the valuation and how you get to the valuation of the business, but also showing the different offers and how they line up with the sale of the shop, the retention of the real estate, versus outward buying and investing. The way it was laid out, you can make an honest decision on what you want to do."
Phil Tripp, owner of Tripp’s Collision
The accelerated timeline for going to market and getting through due diligence ensured the deal closed before the 2024 year-end, avoiding potential tax increases. Phil’s family members also retained roles within the business by working for the acquirer, CollisionRight.
“I think the biggest thing was that they knew who to talk to and how to talk to them. I absolutely feel that we got premium dollar—more than I was hoping. The deal was absolutely phenomenal. You’ve got to know the right people, and [Focus Advisors] knows the right people. I couldn’t imagine somebody trying to do it on their own. And so many people are not ready anyway. We always try to know our numbers, and it was still a lot of work. It was worth it going with Focus Advisors."
Phil Tripp, owner of Tripp’s Collision
