GCG’s Q4 2020 Automotive Industry Update provides an overview of the latest trends in the sector, including recent performance, valuation multiples and the state of the middle-market M&A environment.

Key findings include the following:

• • Automotive Dealerships and Service Providers outperform the S&P 500 index for 2020 while Automotive OE’s had a positive year only slightly below the S&P 500 index. Conversely, the Automotive Supplier base had a disappointing year having negative returns for 2020 with foreign suppliers performing much worse than U.S. suppliers.

• • Automotive M&A activity increased dramatically in the 4^th quarter in both volume of deals and the value of deals completed. Deal volume in this sector has almost tripled from its low point during the 2^nd quarter of 2020.

• • While private equity has become more active in various segments of Automotive, the majority of deals in this sector are done with strategic buyers.

• • Automotive Retail is the biggest driver of M&A activity in the middle-market Automotive segment. This segment made up 59 percent of all deals completed in the 4^th quarter.

Click here for the full update.

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