We are pleased to announce the first publication of our Automotive & Mobility Report which provides valuable insights and analysis on M&A dynamics and valuation developments in Europe within the Automotive & Mobility Industry.
The automotive market has faced numerous challenges in recent years and is undergoing a significant transformation. While the market has seen a partial recovery in passenger car production it remains unclear if and when production and sales numbers return to pre-Corona levels. The recent strong performance of Chinese manufacturers and the increasing shift in production towards China in recent years also indicate that the market environment for German and European suppliers will remain challenging.
Automotive M&A activity in Europe has cooled off with 43 deals in H1 2023, down c. 20% compared to last year. Besides increasing financing costs, market participants are getting mor cautious.
Valuation multiples continue to be under pressure. Especially suppliers in the segment chassis/underbody and engine/under-the-hood trade below 5x EBITDA 2023E with German and European players trading below their US and Asian competitors. Nevertheless, the current transformation offers new ways of rethinking customers behaviours and our understanding of the car itself und how we define mobility, concluding in new business opportunities.
Stay informed with our report and navigate the transformative landscape of the Automotive & Mobility Industry. Please contact us with comments or questions.
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.
