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 4th 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 2nd 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 4th quarter.
Click here for the full update.