57% Of Auto Companies Expect M&A Outside Their Own Sector Driven By 'Innovative Disruption And Changing Customer Preferences'


20-Year Pro Trader Reveals His "MoneyLine"

Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.


  • In their most recent Automotive Capital Confidence Barometer report, analysts at research firm EY pointed out that “companies embrace sustainable M&A as deal markets generate renewed growth.”
  • According to the most recent survey, nearly 60 percent of respondents acknowledged they were expecting a pursuit of acquisitions over the next 12 months.
  • Broadly speaking, deal fundamentals remain positive.
  • After adapting to the low-growth global economic environment, and in spite of the concerns over short-term market volatility, automotive executives surveyed by EY expressed “continued optimism about deal making in the current macroeconomic environment.”

    The poll indicated that deal fundamentals remain positive, as the probability of deals being closed and the quality of opportunities increase strongly and consistently. While experts anticipate most of the investments will be made in the lower middle market, they noted that “larger deals – those in excess of $250 million USD – now make up nearly a quarter of planned M&A.”

    Acquisitions Beyond Sector

    Fifty-seven (57) percent of automotive companies declared to be now “looking at acquisitions beyond their traditional industry boundaries, fueled by innovative disruption and changing customer preferences. Cross-sector as well as cross-border deals will play a significant role in the M&A story,” the report explicated.

    Moreover, they pointed out that most of the potential acquirers are exploring opportunities beyond their own national borders – with the eurozone as a focus point.

    M&A Strategies And Buyer Competition

    The latest Barometer “finds buyer competition, as more companies have returned to dealmaking, becoming a greater challenge to M&A strategy. Adverse political or economic conditions are also proving troublesome, which reflects the earlier findings that geopolitical issues are an increasing concern,” the experts continued.

    Overall, EY sees a “rational and sustained automotive M&A market with growth opportunities continuing to surface, despite moderating economic levels.”

    Executives seem confident about the fact that M&A continues to be an essential way of generating long-term value and establishing the basis for future growth.

    Some Figures For Statistics Lovers

    Source: EY Automotive Capital Confidence Barometer

    Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

    Image Credit: Public Domain

    20-Year Pro Trader Reveals His "MoneyLine"

    Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.


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