Overview of Global Automotive M&A Market Activity (2009-2024)

After years of dealing with COVID-related supply chain disruptions and key commodity shortages (e.g., semiconductors), the global automotive market is demonstrating signs of recovery and an openness to pursue mergers and acquisitions both domestically and internationally, according to an industry report released by the Automotive & Aftermarket investment banking team from Brown Gibbons Lang & Company (BGL) in conjunction with REACH Cross-Border Mergers & Acquisitions.

Automotive M&A Activity Overview
The following section compares global automotive deal size and deal count over the last 15 years across buyer type, deal type, and geography.

An average of 320 deals were completed per year across various sectors in the automotive supplier market, including aftermarket, interiors, powertrains, safety and electric, and automotive components. In both the pre- and post-COVID periods, average deal sizes were solidly middle market, with multiple “platform” sized investments being made.

Key Observations – Automotive Industry M&A

• Deal size peaked in 2019 at $61.8 billion and hit a low in 2010 at $8.5 billion . A significant contributor to the 2019 spike was Stellantis’s acquisition of Fiat Chrysler Automobiles for $45.3 billion. Given the propensity for episodic major mergers like the Stellantis Fiat transaction, average deal size tends to fluctuate year-over-year.
• In contrast, 2010 witnessed a high number of lower middle market deals (value less than $100M), totaling 296 transactions, indicating consolidation that year. This was a result of acquirers showing caution coming out of the global financial crisis.
• In 2020, the transaction count fell to 212, marking a 15-year low. During this period, ~72% of the transactions were strategic, primarily reflecting consolidations, while the remaining 28% were financial. This reflected caution exhibited by financial acquirers tied to the relatively tight access to debt to support buyouts.
• Deal activity was muted in 2020 and 2023 because of the continued uncertain macroeconomic and geopolitical environment, with transactions dropping by ~19% and ~25%, respectively.

Automotive Market Challenges and Outlook
The macroeconomic challenges and major events, such as the COVID-19 pandemic have introduced additional challenges for the automotive M&A market.

• Post-pandemic M&A and disposal activity increased due to necessary sector consolidation. Companies focused on rapid strategy execution utilize M&A to accelerate new capability capture and maintain or improve their market positions.
• In 2023, global M&A activity normalized to pre-pandemic levels, though partially impacted by elevated interest rates, continued higher-than-normal inflation, and overall macroeconomic uncertainty. Middle market deals and large-cap deals, where enterprise values are less than $1 billion, continue to dominate the supplier market activity and are expected to drive deal volume moving forward.

The full Automotive Market Insider Report covers many more relevant industry topics, including:

• The key trends that are impacting automotive M&A activity in the automotive supplier market
• The segments in the automotive market that are poised for growth in 2025
• An in-depth analysis of global M&A activity over the last 15 years across various sectors

The full 51-page pdf is available for download here.

Contact our Automotive & Aftermarket Investment Banking Team
Led by Todd R. Cassidy, BGL’s Automotive & Aftermarket team maintains coverage of the broad automotive sector and brings a unique perspective, with experience as both operators and advisors within the sector. Please reach out via our contact form to learn more.