IMAP Germany Automotive & Mobility Sector Report 2024 | Carve-outs
We are excited to share the latest edition of the IMAP Germany Automotive & Mobility Sector Report 2024. This comprehensive report provides valuable insights into M&A dynamics across the evolving automotive sector, with a special focus on carve-out transactions and the strategic shifts driving the industry.
The automotive and mobility industry are currently facing significant challenges driven by the transition to electric vehicles (EVs) and China's dominance in battery production and raw materials. The EU's plan to introduce tariffs on Chinese EVs this November could lead to further trade conflicts, with negotiations still ongoing.
Key Highlights:
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61 M&A transactions were recorded in Europe from Q1 to Q3 2024, down from 82 during the same period in 2023, marking a further decline from the peak in 2021.
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A higher proportion of deals involved carve-out transactions, driven by increased private equity interest.
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Despite market challenges, electronics and software companies continue to attract strong buyer interest.
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Valuation multiples have generally decreased across most segments. Technology, and Electronics peer valued highest with median EBITDA multiples at 10.3x and 8.2x respectively.
The market is entering a new phase, where past volume growth can no longer be taken for granted, and rising risks are increasingly reflected in valuations. A combination of factors, including potential tariffs, shifts in consumer behavior, and evolving regulatory conditions, is contributing to increased uncertainty, particularly in the EU.
Stay informed with our report and gain valuable insights into the latest M&A-trends and market dynamics driving the future of the Automotive & Mobility Industry.
Please contact us with comments or questions.
You can download the full report below.
Jurgis V. Oniunas
IMAP Chairman
At the start of the year, the outlook for Q1 was highly optimistic, with expectations of slowing inflation, lower interest rates, and improving growth projections. Unfortunately, we live in interesting times. Early in the year, speculation around the disruptive impact of AI on traditional SaaS business models triggered a significant revaluation in parts of the Software sector. More recently, escalation in the Middle East conflict has introduced fresh volatility – pushing oil prices higher, adding upward pressure on inflation, and creating supply-chain uncertainties. While it is too early to tell how these new shocks will eventually affect the global M&A market, we can be sure that our dealmakers around the world are on the ground every day – negotiating, re-evaluating, adjusting positions, and adapting to whatever the environment throws at them to deliver the best outcomes for their clients. They’ve done it for over 50 years, and that’s exactly what they’ll continue to do, no matter the conditions.
