M&A activity in the Automotive sector is sustained, with about 400 transactions taking place every year.
As we are actively talking to buyers and sellers in this field, we know the key drivers in the sector. Firstly, OEMs are global and seek global suppliers – auto components suppliers are looking for targets to complete their geographical coverage and offer platforms on each continent. That’s why we are often involved, with our extensive global presence.
Secondly, acquisitions are driven by technological change. For example, development and scale-up of electric vehicles is driving up the demand for new related technologies. Thus, buyers are either betting on the growth of electric cars or hedging against decline in their combustion engine related businesses. Also, driver-assistance is increasing penetration and this creates needs for related technologies.