BERYLLS STUDIE AUTONOMES FAHREN EN15. November 2018
pressemeldung_M&A_201719. December 2018
BERYLLS STUDY ON MERGERS & ACQUISITIONS AS ENABLER OF A DIGITAL TRANSFORMATION IN THE AUTOMOTIVE INDUSTRY.
In the study “M&A Automotive 2017: Mergers & Acquisitions as Enablers of a Digital Transformation in the Automotive Industry”, the management consultant Berylls Strategy Advisors performed the first ever analysis of 257 M&A transactions explicitly in the automotive and mobility industry, which were conducted in 2017 in the German-speaking area as well as by companies based in the DACH region (Germany, Austria and Switzerland).
The study covered all the automotive companies along the supply chain as well as all the digital players with a focus on CASE technologies (connectivity, autonomous driving, shared services and E-mobility). As a result of the transactions, 153,446 employees changed their employer, and a revenue volume of €41.4 billion was divested. The majority of transactions (60%) were complete takeovers, but investments, mergers, joint ventures and pure venture capital investments were also taken into account. “The automotive industry is getting ready for the digital future. It has long realized that there is no place for lone wolves in the race for the car and mobility of tomorrow,” says Dr. Jan Dannenberg, Partner at Berylls Strategy Advisors.
M&A-TARGETS 2017 ALONG THE AUTOMOTIVE SUPPLY CHAIN.
The automotive supply industry was the biggest sector for company takeovers in 2017: In the “vehicle production” sector, the picture is distorted by the takeover of Opel with €17.7 billion revenue volume and 34,500 employees by PSA.
2018/2019: M&A TRANSACTIONS CONTINUE TO INCREASE.
The digital transformation of the industry will be reflected in the M&A this year. “The number of company takeovers will continue to increase in 2018, and probably in 2019 as well,” says the industry expert “The potential purchasers have large liquid assets , financing costs continue to be very low, and pressure to grow is unabatedly strong among the suppliers,” he continues.
AN INDUSTRY IN TRANSITION: CONSOLIDATION AND DIGITALIZATION.
The study highlighted two parallel developments that will have a lasting effect on the sector:“Think digital” has arrived in the industry. A third of the M&A targets in 2017 were “digital players” and startups.
“Think digital” has arrived in the industry. A third of the M&A targets in 2017 were “digital players” and startups.
The consolidation of the automotive industry continues: Around 100 of the total of 257 companies that changed hands in 2017 were taken over by classical automotive companies, 84 of those by foreign purchasers, mostly from Europe.
DIGITALE PLAYER VS. CLASSICAL AUTO COMPANIES.
In terms of numbers of employees and revenue, transactions in the digital world lag well behind classical, conventional transactions.
M&A PLAYERS: STRATEGISTS AND INVESTORS.
Automotive suppliers, together with engineering and software service providers form the majority of the “strategists”. They invest rather conservatively and use M&A transactions mainly to build up new skills as well as additional market shares and new customer relationships. In second place, they are followed by “financial investors”: 67 automotive companies with almost 41,000 employees were taken over by holding companies in 2017. Venture capital is a relatively new, but fast-growing purchaser group in the automotive M&A market. They prefer to place their investments in startups that concentrate on digital business models. “Risk capital will become a fixed component of the automotive industry, especially for the new CASE technologies,” explains industry expert Dannenberg.
The automotive manufacturers themselves play a somewhat minor role in M&A. The takeover of Opel by PSA in 2017 (€17.7 billion revenue volume; 34,500 employees) is not typical for the market. Excluding Opel, OEMs acquired only €1.7 billion of revenue volume in 2017 with 20 takeovers. Moving outside their original business field, OEMs, however, are increasing their focus on digitalization specialists. With 14 company acquisitions, Daimler was the clear frontrunner among digital purchasers in 2017.
DR. JAN DANNENBERG
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