GCG’s Q4 2023 Automotive & AutoTech 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 announced transactions increased in Q4 2023 with 119 announced deals, up from 100 in Q3 2023, representing a 19% increase. This is still lower than the prior year, as there were 137 announced transactions in Q4 2022, representing a 13% year-over-year decrease.
• In Q4 2023, there were 15 announced AutoTech transactions, down both year-over-year and quarter-over-quarter, where there were 17 deals in Q4 2022 and 20 deals in Q3 2023. Continuing the trend from Q3, hardware deals made up the majority of M&A activity in Q4 2023; however, AutoTech software deals continue to attract higher multiples than hardware.
• Over 2023, AutoTech Software public stock performance significantly outpaced the S&P 500 and NASDAQ composite indices with a 56.1% annual return compared to the S&P 500 and NASDAQ annual returns of 22.5% and 42.0%, respectively, with AutoTech Hardware underperforming with an annual return of 9.6%.  Automotive Manufacturers and Retailers outperformed the S&P 500 and Dow Jones performance on an annual basis returning 59.5% and 40.8%, respectively, compared to the S&P 500 and Dow Jones respective annual returns of 22.5% and 12.1%, respectively.

Click here for the full update.

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