Deloitte Corporate Finance LLC
Deloitte Corporate Finance LLC (“DCF”) has the ability to help your company look for growth and liquidity and to identify strategic opportunities to take advantage of current market and industry trends. Whether your company is considering an acquisition, divestiture, joint venture or other value-added services, DCF can provide the professional experience to help you execute your transaction.
As the corporate finance practice of the U.S. member firm of Deloitte Touche Tohmatsu Limited, DCF has access to vast relationships and knowledge within the automotive industry. The Deloitte Touche Tohmatsu Limited member firms and their affiliates (“DTTL Member Firms”) have vast experience in dealing with automotive related transaction issues, including union and workforce implications and customer supply arrangements.
With the global reach provided by the DTTL Member Firms, DCF’s extensive contacts and experience in automotive transactions, we can assist you in originating, structuring and executing the transactions that can allow you to take advantage of the current industry environment.
Automotive industry insight
The automotive industry represents an important and significant segment of the global economy that is expected to continue to face challenges due to many factors pushing change in a merger and acquisition environment driven by consolidation, "right-sizing" and a focus on core competencies:
- Divestitures continue to increase as suppliers restructure from Chapter 11 bankruptcy and OEMs continue to focus on their core businesses.
- Consolidations and strategic collaborations are driven by synergy opportunities that create a global advantage and/or help maintain competitive margins.
- Renewed interest by strategic buyers is expected to offset declining participation by financial buyers whom are finding it more difficult to finance highly leveraged transactions.
- U.S. automotive companies are engaging in talks with their labor unions in an effort to reduce cost and increase flexibility in their manufacturing operations to remain competitive with non-union competitors.
- OEMs are focused on simplifying the supply base by reducing the number of vendors; preferred suppliers will seek to enhance their capabilities through collaboration and acquisitions to meet higher volume demand.
- A continued weak dollar is driving opportunity for foreign OEMs to increase North American output and consequently providing potential acquisition opportunities of North American automotive manufacturers and suppliers.
- Legislation aiming to increase automotive fuel efficiency is placing pressure on the automotive industry to adhere to more stringent regulation and develop "green" alternatives.
Contact our automotive industry leaders: Ellen Clark and Tony Blanchard.