Increasing interest from private equity firms and major industry players has put automotive sector M&A activity in the fast lane, with strong deal multiples and a dynamic marketplace.
Much of this activity has been fuelled by technological advancements, and in their latest automotive sector report, the CP Deals team has shown why the momentum behind high-value automotive deals is showing no signs of slowing down.
WHY THE AUTOMOTIVE SECTOR?
Demand across the automotive sector is accelerating, driving up deal multiples and making it an attractive space for investment. Businesses are being snapped up as major players seek to consolidate their market position and broaden their product offerings.
STRONG DEAL MULTIPLES
The automotive sector is seeing significant interest from private equity houses and strategic acquirers. This is leading to robust valuations and competitive deals across the board. Automotive technology (Auto Tech) businesses, in particular, are in high demand. As technological advancements permeate every corner of the industry, these businesses are proving to be hot property, attracting strong deal multiples and a high level of transactional activity.
At Cooper Parry, in the last 12 months alone, we’ve advised on deals with an equity value of £269.2m, making us the most active adviser in the sector. Our proven process, deep industry knowledge and extensive buyer network ensure high completion rates and successful outcomes.
KEY QUESTIONS FOR BUSINESS OWNERS
With the automotive sector moving at speed, business owners need to think ahead. Here are some crucial questions to consider:
- How do we plan for the future and achieve our strategic goals?
- What happens when I want to exit the business?
- How will I fund future growth?
- Could acquisitions help accelerate our growth plans?
- How do we incentivise and align our management team with our business objectives?
Our Corporate Finance team are experts in guiding businesses through these often-pivotal moments with tailored, strategic advice that puts your needs and aspirations front and centre.
KEY ACQUIRERS IN THE AUTOMOTIVE MARKET
In such a dynamic sector, understanding the broad range of potential acquirers is crucial. We have strong relationships with key players across the market, including large trade businesses, private equity investors, OEMs and specialist investment firms.
These deep industry connections are key to helping our clients secure the right deal, with the right partner, at the right time.
WHAT COOPER PARRY CAN DO FOR YOU
We’re the UK’s leading automotive sector adviser, advising on over 40% of all deals in the space. With a national team of 50+ dealmakers, we specialise in lead advisory, transaction services and transaction tax/legal support, as well as the full spectrum of financial and accounting services.
So, whether you’re looking at strategic growth, an exit or investment, get in touch today to find out how we can help you achieve your goals.
