In a recent report from Hampleton Partners, the international M&A and corporate finance advisory firm for technology companies, it is revealed that the Autotech & Mobility sector is experiencing a surge in deal volume, with 64 deals recorded in the first half of 2022. This marks an all-time high for the sector.
The report highlights that automotive megatrends, such as the shift to electric propulsion, the increasing software-centric nature of vehicles, and the rise of autonomous driving, are driving this increased M&A activity in the industry.
In terms of valuations, the report shows that the trailing 30-month median revenue multiple is currently at 3.2x, the highest level since 2018. However, the trailing 30-month median EBITDA multiple has dropped by 34 percent from 11.8x in 2H 2021 to 7.8x in 1H 2022. According to Michel Annink, director at Hampleton Partners, this reflects the margin pressures and rising costs of capital that the industry is currently facing.
The report also highlights the key players in the sector, with 147 active acquirers during the past 30 months. The top acquirer is Imaweb 2000 SL, with five acquisitions over this period.
Looking ahead, the report predicts that the future of M&A in the Autotech & Mobility sector is promising. As the entire industry rapidly shifts towards battery electric-powered vehicles and the demand for EVs continues to grow, aided by governmental regulation and stimuli, the report expects an active M&A environment in the coming years.
The full report, which analyzes transactions, trends, and activity in the Autotech & Mobility sector, as well as the top trends in EVs & charging, can be downloaded from the Hampleton Partners website.