Drive value: Automotive M&A insights 2008

This edition of Automotive M&A Insights provides an annual review of M&A activity and key trends within the global automotive industry. The lack of available credit defined the automotive industry in 2008, with continued constraints in financing remaining the number one concern for both industry as well as dealmakers. In the M&A space, increased distress and restructuring along with board structural shifts have increased companies' needs and desires to execute transactions. Although, until access to capital returns, M&A activity is likely to remain depressed. The M&A outlook for 2009 is at best uncertain, as a result of the interdependence between deal activity and financial, macroeconomic and industry factors.

As we enter 2009, the duration and depth of this downturn remains uncertain. However, the availability of financing combined with a return of consumer confidence will likely be key preconditions for an upturn. In the interim, the automotive industry will require significant restructuring in order to adapt to current market conditions. M&A will undoubtedly play a key role as vehicle manufacturers (VM), component suppliers and companies throughout the value chain look to remove excess capacity, raise capital and reposition their business. While the restructuring process will not be easy, more than likely it will focus casualties among automotive companies, a restructured automotive industry will be better prepared and positioned to profit from the next growth cycle.

Automotive M&A Insights highlights the M&A outlook for 2009 and provides a unique perspective of the trends that will likely occur in 2009 and beyond, while automotive companies look to survive the economic downturn.

Download: Automotive M&A insights 2008