As consolidation accelerates across the automotive aftermarket, repair shop owners are being urged to first decide what kind of business they want to build before chasing growth or outside investment.
Michael Herzberg Smith, a partner at the Institute for Automotive Business Excellence, told attendees of the Midwest Auto Care Alliance Hi‑Tech Training and Vision Expo that owners must clearly define their identity and long‑term role in the industry.
“You just have to decide what do you want to play,” Smith said at the Kansas City event.
Smith outlined three broad archetypes that owners tend to fall into. The first is the builder, typically a single‑ or small multi‑shop operator focused on running a strong local business. The second is the accelerator, an owner seeking intentional growth and reinvestment. The third is the architect, who aims to build a scalable platform capable of consolidation and acquisition.
“Lifestyle operators tend to be more reactive,” Herzberg Smith said. “They run strong shops. They focus on income.”
By contrast, value creators and platform builders reinvest earnings to increase long‑term equity and optionality.
“The value creator grows equity, intentionally reinvesting what you have,” he said.
There is no single correct path, but Herzberg Smith warned against drifting into growth without clarity. Owners who pursue expansion without the right mindset or systems often create instability.
“You can grow faster than you can digest,” Herzberg Smith explained. “Don’t do that.”
Owners to think beyond daily operations and consider whether they are wired to act as investors rather than operators, he noted. That shift requires stronger systems, leadership development and reduced dependence on the owner.
Herzberg Smith also cautioned against ego‑driven or emotional expansion, including acquisitions that do not fit a defined strategy.
“Don’t start with random acquisitions,” he said. “Do not start with ego driven or emotional expansions.”
Clarity about identity helps owners make better decisions about capital, partnerships and timing, Herzberg Smith said. Without that clarity, growth can create risk rather than opportunity.
“Which future role are you truly wired to play in the next era of this industry?” he asked.
Herzberg Smith urged owners to reflect honestly on their ambitions and strengths, rather than assuming consolidation will force a single outcome.
“The question isn’t whether you participate,” he said. “It’s how you will intentionally win.”
Image credit: Depositphotos.com
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