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Automotive Update: Second Quarter 2011

Deloitte Corporate Finance LLC


Automotive Update

This quarter’s Automotive Update, produced by Deloitte Corporate Finance LLC (DCF), summarizes the most recent transactions within this industry along with information on the most active buyers, current transaction valuation multiples and an overview of the public market’s perception of the industry.

Highlights include:

  • Ongoing weakness of U.S. dollar, rising costs for raw materials and energy prices will continue to pressure OEMs and suppliers and put additional stress on sales volumes and profit margins, but many have structured their operations to be better positioned to cope with market volatility. 
  • In the last twelve months, observed automotive transaction multiples have averaged 7.2x unadjusted EBITDA, trending upward from 6.7x average observed in 2010.
  • Despite recently observed increases in deal volume and higher valuations, M&A opportunities remain for both strategic and financial buyers in select segments and markets.

Download the Automotive Update below.

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