GCG’s Q3 2024 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:

• Industry Transformation: The automotive sector is evolving rapidly, driven by the transition to EVs, autonomous technologies, and software-defined vehicles. Despite weak consumer sentiment and regulatory uncertainty, the convergence of manufacturing, services, and transportation presents significant opportunities.
• Market Divergence: AutoTech Software significantly outperformed the market with a 65.6% share price increase, reflecting demand for tech-driven solutions, while AutoTech Hardware faced challenges, declining 3.7% over the past year due to adoption and production issues.
• M&A and Private Placements: Q3 2024 saw a resurgence in M&A and private placement activity, with increased deal values and $8.5B raised. Strategic acquisitions are focused on premium assets and technology-driven innovation, especially in AutoTech.
• Valuation Trends: Across segments, valuation multiples show a normalization post-COVID, with AutoTech Software maintaining higher EV/EBITDA multiples (19.3x) compared to traditional automotive sectors like manufacturers (9.0x), highlighting varying growth trajectories.

Click here for the full update.

See here for all Automotive News and Updates

Get in Touch

Tell us a little about yourself and we will get in touch as soon as we can.