Industries + Sectors
Automotive
At Global PMI Partners we work with clients across many industry sectors. Our approach to consulting necessarily requires teamwork and collaboration with you because we believe that no one external knows your industry or your business like you do. However, automotive trends and specifics do impact M&A strategy and execution which vary from other industries. We understand these and bring lessons, customized solutions and proven experience from other automotive M&A deals.
Industry trends
- Autonomous vehicles, connected cars, ride sharing, cybersecurity and other technology advances are driving expansion in suppliers that require big R&D budgets
- Pulling out of Mexico – repatriating funds in the US in 2017 could drive near-term growth in the US, loss of business in Mexico, global effects
- New car sales will level off and companies will need to find ways to maintain/grow profit
- Automakers are consolidating platforms and relying on big suppliers for global supply
- Need to drive out waste across the automotive ecosystem, especially in thin margin business
M&A trends
- Supplier consolidation – at higher multiples
- North American suppliers show the greatest M&A opportunity
- Chinese are looking for North American opportunities
- According to Automotive News, the total value of automotive supplier deals in 2015 and 2016 was $74.4B; 29 transactions valued at $500M+
PMI challenges in this sector
- Finding the right degree of integration (synergies) vs autonomy (creativity, freedom)
- Integration vs digital transformation in most workstreams
- CRM, data science and client retention
- Data security
- Optimization of technological possibilities and costs
- Talent retention and acquisition
- Cultural differences – a key issue in this industry not only internally but also on the client side
- Legacy systems, NIH, labor practices, and other embedded inefficiencies
How we can help
- Integration support from DD to implementation
- Carve out preparation including SLAs/TSAs
- Provide high-value add support on key workstreams (e.g., Sales & Marketing, Customer Service, Call Center)
- Integration skills and playbooks to support serial acquisition strategies
- Cross-border support
Global PMI Partners specific value prop
- Advise through the deal lifecycle from transaction strategy and deal origination, to execution and post-transaction integration
- Access and insight through global reach and industry relationships at the senior executive level
- OEMs, Suppliers, Vendors, Wholesalers, Retailers
- Bridge cultures and understand strategic challenges