GCG’s Q2 2022 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:
- The broader U.S. equity market saw meaningful decreases in Q2 2022 as Federal Reserve rate increases continued to create caution and uncertainty in the market. Inflation and supply chain pressures continue to remain a challenge across the Automotive sector, with companies battling rising input and material costs.
- Based on a selected group of Automotive companies across various sub-sectors, the industry experienced an average decrease of 13.9% in share price over the latest 3-month period. Automotive Manufacturers continue to fight for market share in the growing electrical vehicle market, which should provide substantial tailwinds for the industry in coming years.
- In Q2 2022, middle-market M&A activity within the Automotive sector saw a decrease in transaction volume compared to Q1 2022. However, Q2 2022 deal volume remained steady compared to Q2 last year, continuing what will likely be another strong year in the middle-market M&A space.
- Automotive Retail continued to remain the most active sector, accounting for 64.3% of total Automotive transaction volume. Auto Parts & Equipment showed strong sector strength as well recording 14.3% of Automotive transaction volume in Q2.
Click here for the full update.