The New Wave of Acquisitions in the Automotive Supplier Industry

The dawn of a new era

• M&A business is slowly picking up speed despite recent bumps in the market
• The one-time seller’s market is now a real buyer’s market
• Financial investors are still shying away from deals
• Growth strategists from the Far East are fueling competition

The transaction market in Europe’s automotive supplier industry has undergone a metamorphosis since the financial crisis: a huge number of companies are supposed to be put up for sale, but financial investors, in particular, are hesitant to go shopping for them. As a result, investors operating in a systematic manner have an opportunity to sweep in and acquire eye-catching companies at steeply discounted prices. At the same time, pending sales will stoke competition in many supplier segments. These are a few of the conclusions reached by the new Oliver Wyman study “The New Wave of Acquisitions in the Automotive Supplier Industry.”