GCG’s Q3 2021 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:
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- Automotive stocks have seen varying results depending on their sub-sector. Auto OEM stocks have greatly outperformed the market even with significant supply chain issues. The combination of strong sales price/mix during the last quarter as well as technology innovation has propelled the Auto OEM stocks to a much better performance than the S&P 500 over the past 3 years.
- In Q3 2021, middle-market M&A activity within the Automotive sector saw a slight increase from Q2 in transaction volume and a decrease in total deal value from the previous quarter. Activity and multiples vary significantly depending on the automotive subsector.
- Automotive Retail was by far the most active sector accounting for 58.5% of total Automotive transaction volume. This can be attributed to the ongoing consolidation among dealership groups as well as the changing retail approach overall.
Click here for the full update.
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