The quarterly BDO Automotive Sector Update provides you with a quick overview of the current M&A trends as well as the capital market valuation in the Automotive supply industry sector in a compact form. In addition to a general analysis of deal flow, which can be described as an M&A trend indicator, selected transactions are examined in detail. In this update, the valuation levels of publicly traded Automotive suppliers in North America and Europe are presented.
The Automotive industry is undergoing an accelerated transformation, the main drivers of which are the switch from internal combustion engines to electric drives, an increasingly strong trend toward autonomous mobility, smart interiors and a rising software content. Even though successful suppliers from the "old ICE world" will continue to have their “raison d'être” for a long time to come, and well-positioned suppliers will continue to operate profitably even in the face of the accelerating transition to e-mobility, the technology shift is also becoming increasingly evident in corporate transactions:
- Group portfolios are being adjusted in response to the expected changes in the industry and investments are being made in new future fields
- Many suppliers will face increasing financing problems in view of the effects of the Corona pandemic (collapse in demand, difficulties in supply chains / chip shortages)
- While some "systemically important" suppliers may be absorbed by OEMs, the majority will face the question of changing shareholders or generally accessing sufficient financing.
BDO Corporate Finance/M&A supports clients in the Automotive industry in all relevant M&A issues, such as the sale of (sub-)divisions or the entire company, company acquisitions or financing considerations in connection with a change in the shareholder structure.