Customer & Market Due Diligence Of Collision Repair Supplies Distributor: Assessing Disintermediation And Margin Risks Amidst Downstream Consolidation

Conducted a 3-week customer & market due diligence to establish the collision repair market dynamics and to assess the risks associated with the collision repair shop consolidation trend. To this end, Gotham:  conducted 76 anonymous interviews with and collected 74 online surveys of collision repair shops owners, managers, and paint distributors to gain insights into collision repair dynamics, industry trends/outlook, and potential risk of collision shop switching paint manufacturers/distributors; interviewed insurance companies to understand their direct repair programs (DRPs); established the automotive refinish market size, growth rates, industry structure, and key relationship dynamics; identified the key MSO players and established their acquisition/growth trends; and profiled the collision repair paint distribution competitive landscape. Gotham’s assessment provided a fact-based, robust view on the target’s disintermediation and margin risks and confirmed an opportunity to build a national paint distribution business, allowing our client to successfully close the deal. 

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