CHICAGO, Dec. 21, 2022 /PRNewswire/ — Industry conditions have shifted M&A techniques but not all round offer quantity, in accordance to an automotive aftermarket business report unveiled by the Automotive investment decision banking workforce at Brown Gibbons Lang & Enterprise (BGL).
Obtain the BGL Automotive Aftermarket Insider: https://www.bglco.com/investigation/bgl-automotive-aftermarket-recap-sema-aapex-2022/
Inside the report, BGL shares its once-a-year recap from the 2022 SEMA Show, analyzing developments that are impacting M&A techniques in the automotive aftermarket.
Important automotive M&A themes influencing offer action in the present-day surroundings include:
- Financial uncertainty has shifted shopper paying out away from new cars and trucks though servicing of existing cars has amplified, steering purchases toward Diy and DIFM products and solutions and non-discretionary solutions this kind of as mechanical and collision mend. As a outcome, M&A transactions involving suppliers of substitution elements and fix machines have observed an uptick in exercise.
- Offer chain issues have abated but not completely, top some providers to rethink reshoring or near-shoring of production. Nonetheless, firms with domestic production stay attractive targets for M&A. Vertical integration strategies are also currently being sophisticated through acquisitions.
- Electrification is no longer an “if” but a “when” question as important automakers announce sizeable investments to speed up adoption of electric motor vehicles (EVs), with EVs expected to at some point depict a massive component of the car or truck parc. Aftermarket businesses that focus in powertrain-linked components ought to also have an eye to the foreseeable future. Suppliers of powertrain areas have resorted to M&A to insert capabilities that insulate themselves from obsolescence. Private fairness has also been on the hunt for powertrain-similar enterprises with these kinds of plans.
- American purchasers appreciate their vans and SUVs, and motor vehicle sector share has shifted as evolving tastes impression shopper shopping for behavior. Corporations generating aftermarket functionality and visual appearance-improving merchandise for vehicles and SUVs proceed to be attractive parts for consolidation.
About Brown Gibbons Lang & Company
Brown Gibbons Lang & Business (BGL) is a major impartial financial investment financial institution and economical advisory company concentrated on the world wide center sector. The agency advises non-public and public companies and personal fairness groups on mergers and acquisitions, capital markets, monetary restructurings, small business valuations and views, and other strategic matters. BGL has financial investment banking places of work in Chicago, Cleveland, Los Angeles, and New York, and genuine estate workplaces in Chicago, Cleveland, and San Antonio. The business is also a founding member of World M&A Associates, enabling BGL to support clientele in far more than 30 countries around the earth. Securities transactions are performed by Brown, Gibbons, Lang & Organization Securities, LLC, an