Building Your Empire: How Michael Herzberg Smith Helps Auto Shops Lead, Grow, and Win in a Consolidating Industry

Why Some Shops Always Win and How You Can Too

Every marketplace has its champions. These are the companies that rise to the top and manage to stay there year after year, setting the standard for excellence and outperforming their competitors. Customers flock to them, employees want to work for them, and they define what success looks like in their space. For independent auto repair shops, achieving this level of dominance is about more than fixing more cars or working longer hours. It requires vision, strategy, and a willingness to prepare for opportunities that most others will miss.

Michael Herzberg Smith, Chief Strategy Officer and Board Member at The Institute for Automotive Business Excellence, is uniquely qualified to help you reach this level of performance. After a distinguished 43-year career advising Fortune 100 corporations, private equity investments, and entrepreneurs about how to grow through mergers, acquisitions, and disciplined leadership, he now brings that expertise directly to aftermarket shop owners. For those who want to expand into multiple locations, acquire competitors, build an empire, or simply prepare to sell their shop for maximum value, Michael provides the kind of insight and guidance that only comes from decades of experience at the highest levels of business.

Many shop owners feel stuck between staying small and trying to grow without a clear path. Michael’s industry-defining development programs show you what it really takes to win consistently, to think like a champion, and to build a business that competitors aspire to emulate. With his help, you can move beyond the day-to-day grind and execute a clear plan for extraordinary long-term success.

Why Private Equity Is Entering the Auto Repair Industry

Over the last decade, private equity firms made major moves in the collision and auto body repair space. These investors acquired and consolidated collision shops across the country, creating regional and national brands out of what was once a fragmented industry. Their strategy has paid off handsomely. Now, some of those same investors – and many new players – are focusing on the independent automotive repair market.

The reasons for this are clear. From private investors’ perspective, the fundamentals of the auto repair business are highly attractive. Service demand is steady because vehicles are staying on the road longer. The market is highly fragmented, with nearly one quarter of a million small, owner-operated shops. Many of these businesses operate profitably but are not fully optimized or scalable. To investors, this presents a golden opportunity to step in, improve operational efficiency, scale to multiple locations, and build value quickly.

Private equity firms are sitting on record amounts of capital and they are under pressure to deploy it into strong, profit-generating, scalable businesses. Auto repair is a priority target for these investors because it combines stability with remarkable room for growth. They are actively looking for well-run, brand-strong, profitable repair shops to add to their portfolios. This means that right now, the market is full of buyers; but only the most prepared and attractive shops will command top-dollar offers and favorable terms.

Michael Herzberg Smith has seen this playbook executed across dozens of industries. He knows what these investors are looking for, how they analyze opportunities, and how they think about risk and value. With his guidance, you can learn how to present your shop in a way that speaks to investors and gives you the best chance to benefit from this wave of consolidation. Whether you want to sell, merge, or even lead the charge by acquiring other shops yourself, understanding the motivations and strategies of private equity is critical to your success.

From Fortune 100 Boardrooms to Independent Auto Repair Shops

One of the most unique aspects of Michael’s perspective is that he did not come from inside the auto repair industry. Instead, he built his career advising and leading companies in over 60 different industry verticals. This breadth of experience gives him a uniquely broad and creative view of what is possible for our industry.

Michael’s career began in corporate financial services, where he rose through the ranks to regional leadership in a Fortune 100 firm. He then transitioned to strategic management consulting, where he became a practice leader at globally respected firms including Merrill Lynch and Deloitte. His work at these firms brought him into contact with some of the largest and most complex companies in the world, advising them on high-performance, value building, and market leadership strategy.

Later, as a private equity entrepreneur, Michael founded and successfully sold several businesses of his own. These experiences deepened his understanding of what it takes to make a company attractive to investors, how to create and negotiate favorable deals, and how to craft a business that creates generational wealth and legacy for its owner.

Now, Michael is applying all of that knowledge and experience exclusively to independent auto repair shop owners. Recently he designed the largest owner-operator driven consolidation deal in the independent automotive service industry, and stewarded the sale to sizable private equity investors. Michael brings a level of sophistication and insight that is unmatched in this industry, helping owners see beyond the day-to-day and position

themselves for strategic growth and market leadership.

Helping Shop Owners Build Empires

For shop owners who want to grow, Michael provides a clear and actionable path to becoming a dominant player in their market. His programs and advisory sessions help you learn to think like an investor, build a scalable and acquisition-ready business, and develop a plan for growth that preserves your culture and customer relationships.

Michael teaches shop owners how to identify and evaluate acquisition targets, how to negotiate deals wisely, and how to integrate new locations effectively. If you have aspirations to own multiple shops or even build an empire, he will show you how to avoid common mistakes, prepare your business systems for growth, and become the recognized leader in your region.

For those who are thinking about selling their shop in the next few years, Michael’s expertise is invaluable. He will help you understand what buyers are looking for, increase the value of your business by preparing it properly, and create a transition plan that protects your employees and your reputation. Many owners wait too long to begin preparing for an exit, which limits their options and leaves money on the table. With Michael’s help, you can take control of the process and leave on your terms, at the top of your market value.

He also places strong emphasis on developing the intangible aspects of a championship business. These include cultivating the right mindset in yourself and your leaders, building a team of rockstars who are aligned with your vision, and fostering a brand and culture that makes your business stand above your competition. These are the qualities that make a company irresistible to team members, customers and investors, and they are essential to optimize long-term success.

Act Now to Secure Your Future

The next few years represent a critical pivot in the independent auto repair industry. Private equity firms are aggressively seeking opportunities to invest in and consolidate this market, just as they did with collision repair. The sooner you begin preparing your shop to meet this demand, the better positioned you will be to benefit from the wave of investment that isn’t just coming, it’s already here.

If you wait, you risk being unprepared, forced to accept unfavorable terms, or left behind entirely as competitors consolidate around you. Acting now means you can take control of your future, whether that means selling your shop for top dollar, acquiring others to grow your presence, or simply strengthening your business to withstand change and thrive.

Michael Herzberg Smith is the trusted guide you need to navigate this evolving landscape. He has helped Fortune 100 companies make strategic decisions, advised private equity firms on where to place their investments, and built successful companies of his own. Now, he is here to help you achieve your goals and secure your legacy.

About Michael Herzberg Smith

Michael Herzberg Smith is the Chief Strategy Officer and a Board Member at The Institute for Automotive Business Excellence. He is a veteran business strategist, high-performance mentor, and expert in mergers and acquisitions with a 43-year career spanning corporate leadership, private equity, management consulting, and entrepreneurship.

Michael holds a Bachelor of Arts in psychology, communications, and economics from the University of California at Berkeley, an Executive MBA from the University of Washington, and a Leadership Certificate from Harvard University. He has served as a consultant and practice leader for world-class firms including Merrill Lynch and Deloitte and has led or advised on strategic transactions in more than 60 industries.

He has personally helped craft one of the largest investment consolidation deals in the independent automotive service industry and now devotes his time exclusively to helping shop owners raise their game, grow strategically, and achieve championship success.

Contact The Institute today to learn how Michael can help you build your winning future and secure your place at the top of your marketplace. Info@wearetheinstitute.com

Grow Your Shop: https://theinstitute.zohobookings.com/#/High-Performance-Group

Buy or Sell Your Shop: https://theinstitute.zohobookings.com/#/MA-Legacy-Builders