Aftermarket dealmaking is poised to accelerate in 2026

Deal activity in the auto aftermarket is picking up ahead of 2026 as investors and operators signal renewed readiness to transact; industry leaders cite fragmentation, available capital and stable repair demand as supporting factors.

Dealmaking in the auto aftermarket is gathering pace as the sector moves toward 2026. A global investment bank's transportation and logistics team reported that investors and operators are signalling renewed readiness to transact after a quieter period. The bank's managing directors, Joe Conner and Elliott Yousefian, said the sector held up through supply chain disruptions, shifting tariff policies and uncertain consumer spending. They said underlying value drivers remain intact. Key points: - Investors and operators reported increased optimism at industry events such as AAPEX and SEMA. - Drivers cited for renewed activity include market fragmentation, available dry powder and a supportive lending environment. - Record-high vehicle ages are increasing repair and maintenance needs, boosting interest in tires, mechanical repair and collision services. - Suppliers and distributors focused on break-fix demand are expected to lead renewed M&A in aftermarket products. - Growth-focused investors are prioritizing companies with non-discretionary demand and a track record of managing tariff and supply chain challenges. - Category leaders are emphasizing technology, automation and data to differentiate operations and improve profitability. Summary: The bank's leaders report that long-term fundamentals in the auto aftermarket remain strong and that several forces are converging to unlock more deal flow. Suppliers serving break-fix demand and platforms using technology and data attracted particular interest. The firm expects more actionable opportunities with scale to come to market in the near term.