Driving Value: 2015 Automotive M&A Insights In this issue 1
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Driving Value: 2015 Automotive M&A Insights In this issue 1
Driving Value: 2015 Automotive M&A Insights In this issue 1 Welcome 3 Key trends at a glance 4 2015—Year in review 9 Insights into regions 11 Analyzing industry segments 12 Who’s buying: Financial versus Trade buyers 13 The road ahead 15 Contact information www.pwc.com/auto Welcome We are pleased to present Driving Value: 2015 Automotive M&A Insights, PwC’s review of mergers and acquisitions (M&A) activity and key trends impacting the global motor vehicle industry. In this edition, we look at: • The status of global deal activity amongst motor vehicle manufacturers, suppliers, financiers, and other related sectors • Key trends that impacted the deal market • Transaction activity by sector and region • Our perspective on the journey to the future This latest edition of Automotive M&A Insights is meant to serve only as a preface to the insights and observations that we can provide to drive successful transactions. M&A leaders in the automotive and financial sectors frequently turn to us for advice on potential transactions and the strategies underpinning those deals. Your feedback is important to us, and we welcome the opportunity to provide you with a deeper look into any of these trends that may be of benefit to your organization. Jeff Zaleski U.S. Automotive Deals Leader +1 (313) 394 3525 [email protected] Driving value 2 2015 Automotive M&A Insights Automotive Key trends at a glance Global automotive deal volume grew by 62.1 billion 9% HISTORICAL 591 HIGH $ in global automotive deal value closing deals in 2015 Predicted global automotive assembly growth Up 60% from 2014 2021 2015 4% CAGR $30.1 BILLION Source: PwC Analysis TA RGET ED EUROPEAN ASSETS million units 40% to HISTORICAL COMPONENT SUPPLIERS Trade buyers’ share deal value soared to TOP 10 DEALS million Others’ segment deal volume climbs ZF Friedrichshafen AG acquisition of TRW Automotive Holdings Corp 50% Up 81% from 2014 2.8 total deal value attributable to U.S. assets $12.5 billion Up 96% from 2014 $388 North American automotive assembly units forecast to be added between 2015 and 2021 Largest automotive deal since 2007 $32.9 billion HISTORICAL HIGH— Average global automotive deal size of of global automotive M&A volume INCREASED 75% 12 megadeals RECORD HIGH HIGH $46.3 billion total aggregated disclosed value of megadeals – HIGHEST EVER IN REVIEW PERIOD Source: Thomson Reuters and other publicly available resources. PwC Autofacts 2016 Q1 Data Release. Driving value 3 2015 Automotive M&A Insights Year in review 2015 365 days—591 deals—$62.1 billion total aggregate disclosed value Overview need advanced manufacturing capabilities to leverage global platforms while still catering to local / niche preferences. Automotive M&A deal volume for 2015 was up 9 percent, further extending gains made in 2014. With 591 deals, the industry saw its highest volume of deals transacted since 2011. • Mobility solutions are becoming a focus in automotive. As tradition, automotive vehicle manufacturers, suppliers, dealers and others try to capitalize on the changing consumer trends toward ride-sharing, car-sharing and autonomous vehicles. • Global market conditions across all industries are are showing positive trends consistent with the automotive industry. Global cross-sector M&A deal value increased 26%, while deal volume remained mostly consistent, when compared to 2014. This increase in deal value is being driven by greater numbers of megadeals (deals greater than $1.0 billion). • The drive for a more connected car leads to cyber security threats of vehicles. Hacking an automobile’s electronic system can cause serious danger, leaving automotive companies thinking of ways to protect consumer trust in automotive connectivity. • Technology and Regulation Drives Changes in Auto —In automotive, new technologies are dramatically changing vehicles, from the advent of the ‘connected car’ and enhanced driver support to better fuel efficiency and new or improved powertrains. Entirely new industries are being created to manage these breakthroughs and develop the processes to integrate new technologies into the automotive business model. As almost 200 nations agreed to reduce carbon emissions at the end of 2015, many automakers look to alternative energy solutions, due to anticipated stronger EPA regulations. In general, OEMs and suppliers alike will likely Driving value Deal volume: Global automotive deal volume is on-par with pre-recession levels, transacting 591 deals. In comparison to 2014, this represents a 9% increase. Deal value: Global automotive deal value rose to 62.1 billion—a massive increase of 60% over 2014 and its highest level since 1999. Deal size: Globally, average automotive deal size increased by a rousing 81%, primarily driven by megadeals. 4 2015 Automotive M&A Insights Average global auto deal size increased 81% from $214 million to $388 million. This also marks the highest average deal value in the past decade and almost 3 times its low in 2010. Disclosed deal value ($bn) 120 700 588 594 584 604 549 515 594 $6 600 543 532 520 490 532 100 591 465 500 $70 80 400 60 300 40 200 20 0 100 $21 $26 $41 $49 $57 $32 $46 $25 $45 $30 $22 $39 $62 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 UST Facilitated investments Disclosed deal value Sovereign Wealth Investment 0 Deal volume (R-Axis) Source: Thomson Reuters and other publicly available sources. Global Auto M&A Deals by Disclosed Value 2010-2015 300 $388 350 7 250 400 300 200 150 58 631 6 24 35 5 $214 32 $186 100 6 $161 $140 12 37 200 32 150 $141 100 50 0 250 50 147 176 147 117 138 116 2010 2011 2012 2013 2014 2015 <$100 mn $100 mn—$1 bn >$1 bn Average disclosed deal value ($bn) Further, of the 160 disclosed deals, the number of megadeals (value greater than $1.0 billion) increased from 6 to 12 in 2015 and 32 deals were between $100 million and $1.0 billion. Continuing the trend from 2014, larger megadeals have led to a significant increase in overall average deal value in 2015. 140 Deal volume In many respects, the financial strength of the automotive industry is back. This is evidenced by deal value increasing by 60% in 2015 up to $62.1 billion, the highest value of deals in 16 years. Much of this increase in deal value is driven by 12 megadeals with a total aggregated disclosed value of $46.3 billion, the largest of which was ZF Friedrichshafen AG’s $12.5 billion acquisition of TRW Automotive Holdings Corp. Global Automotive M&A Deal Volume and Value 2003–2015 Deal volume of disclosed deal value Global automotive 0 Average deal size (R-Axis) Source: Thomson Reuters and other publicly available sources. Driving value 5 2015 Automotive M&A Insights Global automotive, cont. Megadeals Breakdown 2010–2015 PwC’s Autofacts expects the industry to add 21 million units of production between 2015 and 2021, for a compounded annual growth rate (CAGR) of 4%. (PwC Autofacts 2016 Q1 Data Release) Along with record growth, there are unprecedented global challenges that are influencing business strategies and actions in many industries. 100% 14 12 12 80 53% 56% Percent Megadeals in 2015 were double the amount in 2014 and account for 75% of overall deal value. 2015 saw the highest megadeal value and highest share of total deal value in the review period. The 12 megadeals in 2015 is the highest number of megadeals in the review period, excluding the US Treasury Facilitated Investments. 60 46% 52% 10 65% 75% 7 8 6 6 6 6 5 40 4 20 2 0 44% 47% 48% 54% 35% 25% 2010 2011 2012 2013 2014 2015 Non-Megadeal % of Value Megadeal % of Value 0 Megadeal Volume Source: Thomson Reuters and other publicly available sources. Cross-sector M&A As evidenced in the chart below, recent global cross-sector M&A is trending upward, though not at the same rate as the automotive industry. In 2015, both deal volume and value increased by 3% and 26% respectively. Global cross-sector M&A deal volume & value 2003–2015 45 4.5 39.2 3.5 33.1 33.1 32.3 30.2 3.0 2.5 40 38.0 34.1 31.0 29.0 30.4 31.3 35 30 26.9 24.0 25 2.0 20 1.5 15 1.0 10 5 0.5 0.0 Deal volume (thousands) Disclosed deal value ($trn) 4.0 $1.19 $1.55 $2.21 $2.89 $3.89 $2.83 $1.82 $1.89 $2.29 $2.00 $2.00 $2.33 $2.93 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Disclosed deal value 0 Deal volume (R-Axis) Source: Thomson Reuters and other publicly available sources. Driving value 6 2015 Automotive M&A Insights Top 20 deals Top 20 transactions—2015 Date effective Target name Target region Acquiror name Acquiror % of Shares Value of region acquired transaction Buyer Category type ($m) 1 15 May 15 TRW Automotive Holdings Corp US ZF Friedrichshafen AG 2 30 Sep 15 GE Capital Fleet Services-US US Element Financial Corp 3 6 Nov 15 Pirelli & C SpA Europe Marco Polo Industrial Holding SpA 4 8 Jun 15 China Grand Auto Services Co Ltd Asia 5 9 Jun 15 Halla Visteon Climate Control Corp 6 2 Nov 15 7 Europe 100 12,494 TRADE Comp ROW 100 7,211 TRADE Other Europe 77 5,943 FIN Comp Merro Pharmaceutical Co Ltd Asia 100 5,184 TRADE Other Asia Investor Group Asia 70 3,540 FIN Comp GE Capital-European Ops Europe Arval Service Lease SA Europe 100 2,697 TRADE Other 1 Oct 15 Toyota Motor Credit CorpCommercial Finance US Toyota Industries Commercial Finance US 100 2,300 FIN Other 8 2 Apr 15 British Car Auctions Ltd Europe Haversham Holdings PLC Europe 100 1,863 FIN Other 9 18 Dec 15 HellermannTyton Group PLC Europe Delphi Automotive PLC US 100 1,613 TRADE Comp 10 20 Apr 15 Regie Nationale des Usines Renault SA Europe Deutsche Bank AG Europe 5 1,328 FIN VM 11 30 Jan 15 Dynacast International Inc US Partners Group AG Europe 100 1,100 FIN Comp 12 20 Apr 15 Anhui Jianghuai Automobile Group Co Ltd Asia JAC Motors Asia 100 1,064 TRADE VM 13 110 Nov 15 Remy International Inc US BorgWarner Inc US 100 955 TRADE Comp 14 3 Jun 15 KT Rental Corp Asia Investor Group Asia 100 913 FIN Other 15 5 Jan 15 Dongfeng Commercial Vehicles Asia Co Ltd Volvo AB Europe 45 902 TRADE VM 16 5 Jan 15 Eagle Ottawa LLC US Lear Corp US 100 850 TRADE Comp 17 18 Mar 15 Penske Truck Leasing Co LP US Mitsui & Co Ltd Asia 20 750 TRADE Other 18 1 Jul 15 Delphi Automotive-Thermal Sys US MAHLE GmbH Europe 100 727 TRADE Comp 19 9 Sep 15 Henniges Automotive Hldg Inc US Aviation Industry Corp of China (AVIC) Asia 100 572 TRADE Comp 20 31 Aug 15 Magna Intl Inc-Car Interior ROW Grupo Antolin-Irausa SA Europe 100 525 TRADE Comp Driving value 7 2015 Automotive M&A Insights Automotive assembly The industry faced another multi-faceted hurdle as oil prices continued to plummet from 2014 levels. While the full impact of lower oil and gas prices may be difficult to quantify, consumer confidence may improve sales most likely in the United States and in some developing markets, such as India and China. In the U.S., this increase hasn’t materialized yet as widespread layoffs and spending cuts by oil drillers have offset some of the boost. Perhaps the greatest impact of lower oil and gas prices will be on the types of vehicles being purchased. Automakers, who have been concentrating on producing lower emission vehicles, may need to adjust production plans as lower gas prices tend to increase demand for larger vehicles. Other considerations to factor in the big picture focus on collapsing revenues that could lead to political instability in fragile parts of the world including the Middle East. Cheap oil can hurt investments in exploring new areas such as the arctic and West Africa. As oil prices fall against areas of a fragile world economy, it could trigger additional volatility. Reports show that long term outlooks for automotive assembly still are positive, however, recent setbacks in Brazil and Russia, along with slower growth in China, have caused volatility in the industry’s near term growth plans. The industry is expected to add 20.5 million units of production between 2015 and 2021 for a compounded annual growth rate (CAGR) of 3.6%. According to PwC Autofacts, the highest growth opportunities are expected in areas outside of the traditional regional blocks – which means the automotive industry will have to stay mobile and agile enough to chase growth. Russia and Ukraine are still hindered by political and economic challenges, while North America and Europe continue to surpass sales expectations. The European Union assembly of 18.0 million units in 2015 is up 7.3% year-over-year and the U.S. had new vehicle sales of 17,386,331 units, which was an all-time high. Global Light Vehicle Assembly Outlook 2002–2021 110 900 800 90 80 621 700 588 70 584 594 604 591 549 515 532 60 594 600 543 490 465 520 500 50 Deal volume Assembly volumes (millions) 100 400 40 300 30 20 55 56 58 63 65 69 66 58 72 75 80 84 86 88 93 97 102 105 107 109 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Global light vehicle assembly outlook 200 Automotive M&A deal volume Source: PwC Autofacts 2016 Q1 Data Release, Thomson Reuters and other publicly available sources, PwC Analysis. Driving value 8 2015 Automotive M&A Insights Insights into regions Source: PwC Analysis The big picture Across all regions, local deals dominated the M&A activity with 83% of all deal volume consisting of local deals. However, the two Source: PwC Analysis largest deals of the year, as well as four of the twelve megadeals, were cross-border. This led to a significant increase in cross-border deal value from the previous year (up to $29.7 in 2015). Share of deal value by acquirer region increased from 39% to 46%, the highest share of all regions. This is indicative of European based companies continuing the trend of investing more in M&A that began to emerge in 2014. In 2015, North America led the M&A market again in share of deal value by target region at 49%. However, share of disclosed deal value by acquirer plummeted down to 13%. Deal volume by target region remained stable at 159 in 2015, although disclosed deal value by target region jumped 77%. These results highlight a year where M&A activity remained very strong in the United States, but large megadeals by acquirer in other regions stole the show. It appears other regions are looking to North America to seize strategic and growth opportunities. Asia Asia’s share of deal volume by both acquirer and target region showed marginal declines in 2015 to 22% and 18%, respectively. However, the region saw a significant increase in its share of deal value by both acquirer and target as two of the top five deals involved Asian companies. Overall, Asian based companies have shown consistency in their M&A trend by acquirer volume, but in 2015, companies have taken the next step by being involved in much larger deals. Share of Deal Volume by Acquiror Region 2010-2015 90% 7% 27% 9% 27% 9% 33% Share of Deal Volume by Target Region 2010-2015 10% 25% 10% 25% 100% 9% 90% 22% 80% 20% 25% 23% 46% 41% 30% 30% 60% 8% 32% 8% 25% 8% 23% 24% 29% 10% 18% 40% 40% 41% 20% 10% 10% Europe 2011 US 2012 Asia 2013 2014 0% 2015 Rest of World 45% 43% 27% 24% 43% 36% 2010 Europe Source: Thomson Reuters and other publicly available sources. Driving value 22% 30% 35% 31% 2010 20% 50% 20% 0% 7% 28% 70% 28% 27% 50% 40% 4% 31% 80% 70% 60% Europe Europe’s share of deal volume by acquirer and target region marginally increased in 2015, helping Europe maintain its position as the most active region for M&A activity. On the other hand, Europe experienced a major drop in its share of deal value by target region, due to the two largest megadeals that occurred having targets outside Europe. North America 100% Source: PwC Analysis 2011 US 2012 Asia 2013 40% 2014 45% 2015 Rest of World Source: Thomson Reuters and other publicly available sources. 9 2015 Automotive M&A Insights Share of Disclosed Deal Value by Acquiror Region 2010-2015 100% 90% 2% 36% 4% 31% 5% 21% 4% 46% 13% 100% 90% 31% 41% 50% 46% 43% 20% Europe 2011 US 2012 2013 Asia 22% 2014 0% 2015 Rest of World 30% 48% 2% 1% 12% 25% 49% 35% 42% 39% 25% 24% 14% 2010 Europe Source: Thomson Reuters and other publicly available sources. US Local: 136 deals, $5.65 billion Inbound: 23 deals, $24.48 billion Outbound: 28 deals, $2.62 billion 4% 47% 28% 10% 12% 2010 33% 30% 31% 20% 0% 26% 2% 44% 40% 39% 10% 2% 60% 13% 38% 40% 45% 70% 24% 50% 1% 80% 39% 31% 70% 30% 1% 21% 28% 80% 60% Share of Disclosed Deal Value by Target Region 2010-2015 2011 US 2012 Asia 2013 2014 2015 Rest of World Source: Thomson Reuters and other publicly available sources. Europe Local: 223 deals, $12.37 billion Inbound: 44 deals, $3.36 billion Outbound: 20 deals, $16.18 billion Rest of the World Local: 36 deals, $0.25 billion Inbound: 21 deals, $0.62 billion Outbound: 18 deals, $7.84 billion Asia (Asia & Oceania) Local: 98 deals, $14.11 billion Inbound: 10 deals, $1.28 billion Outbound: 32 deals, $3.10 billion Source: Thomson Reuters and other publicly available sources. Driving value 10 2015 Automotive M&A Insights Analyzing industry segments The big picture Deal value accelerated in 2015 compared to the same timeframe in 2014—driven primarily by Component Suppliers and Others category. The Others category had a stellar year with the highest number of deals and highest value since 2006. 68 of 332 deals in 2015 are related to repair and maintenance businesses, on top of 60 of 238 deals in 2014. Vehicle Manufacturers Component Suppliers M&A Activity 2010-2015 Vehicle Manufacturers returned to 2013 levels showing a 66% decrease in deal value, when compared to 2014. There were 2 megadeals in 2014 with a total aggregated disclosed value of $12.7 billion, which is the leading contributor to deal value decline in 2015. 35 303 Components Suppliers saw deal volume declines from 220 deals in 2014 to 190 deals in 2015, representing a decrease of 14%. However, deal value drove increases of $16.1 billion from 2014 – an increase of 96%. These upturns were mainly fueled by megadeals from ZF Friedrichshafen AG’s acquisition of TRW Automotive Holdings and Marco Polo Industrial’s acquisition of Pirelli. Others After significant declines during the peak of the recession, the Others category—including retail/dealership, aftermarket, rental/leasing, financing and wholesale — has experienced 3 consecutive years of increase in deal volume. The segment transacted 332 deals in 2015, representing a 40% increase from 2014 for a deal value of $23.6 billion representing an increase of 349% from 2014. 190 200 189 150 14 100 7 50 $4.4 $10.2 $9.2 $12.1 $16.8 $32.9 2010 2011 2012 2013 2014 2015 0 Deal volume 25 85 69 80 60 40 5 20 $12.1 $15.4 $15.1 $4.8 $16.7 $5.7 2010 2011 2012 2013 2014 2015 0 250 205 15 157 151 238 205 200 193 150 10 100 5 50 $8.3 $19.2 $5.9 $4.9 $5.2 $23.6 2010 2011 2012 2013 2014 2015 Disclosed deal value Source: Thomson Reuters and other publicly available sources. 350 300 20 0 Deal volume 332 Deal volume Disclosed deal value ($bn) 100 70 Driving value 250 220 Source: Thomson Reuters and other publicly available sources. Deal volume Disclosed deal value ($bn) 97 Disclosed deal value 21 Disclosed deal value 120 86 0 202 Others M&A Activity 2010-2015 20 10 300 236 0 Vehicle Manufacturers M&A Activity 2010-2015 15 28 278 Deal volume Disclosed deal value ($bn) Components Suppliers 91 350 0 Deal volume Source: Thomson Reuters and other publicly available sources. 11 2015 Automotive M&A Insights Who’s buying: Financial versus Trade Buyers The big picture Both Financial and Trade buyers saw increases in deal volume and deal value in 2015, but Financial buyers more than doubled-down on the industry with a 105% increase in deal value. Financial Buyer M&A Activity 2010-2015 180 25 Financial buyers—Green light, red light 160 Deal value trends out-paced volume in 2015 with an increase of 105%, when compared to 2014, primarily driven by six megadeals with an aggregate disclosed value of $16.1 billion. Trade buyers—green lights ahead 2015 brought monumental values of initiated deals for Trade buyers, building on 2014’s stellar performance. This increase was significantly driven by six megadeals with an aggregated disclosed value of $30.3 billion. 145 20 149 160 140 141 120 117 15 115 100 80 10 60 Deal volume Disclosed deal value ($bn) Financial buyers saw increases in both deal value and deal volume in 2015. Financial volume increased by 3%, and with 149 deals, represents the most deals for financial buyers in 4 years. 40 5 20 0 This year proved to be record-breaking as deal volume is on par with pre-recession 2008 levels and value surpassing the previous record holder, 2007, by 32%. $10.0 $13.7 $4.2 $9.2 $9.8 $20.0 2010 2011 2012 2013 2014 2015 Financial value 0 Financial volume (R-Axis) Source: Thomson Reuters and other publicly available sources. Trade Buyers M&A Activity 2010-2015 Financial Buyer Share of M&A Activity 2010-2015 442 398 36 400 350 373 379 27 300 18 200 9 0 80% 500 Deal volume Disclosed deal value ($bn) 434 Share of M&A activity 45 100 $14.8 $31.2 $26.1 $12.5 $29.0 $42.1 2010 2011 2012 2013 2014 2015 60% 40% 27% 25% 27% 25% 27% 20% 0% 0 24% 40% 30% 14% 42% 25% 32% 2010 2011 2012 2013 2014 2015 Financial buyer share of total value Trade value Trade volume (R-axis) Financial buyer share of total volume Source: Thomson Reuters and other publicly available sources. Driving value Source: Thomson Reuters and other publicly available sources. 12 2015 Automotive M&A Insights The road ahead A positive outlook for Automotive M&A While the industry as a whole has faced challenging times over the past several years, the markets have pulled themselves out of the worst global economic downturn in recent history and are trending to surpass the peaks of the automotive industry in 2007 and 2008. Given the robust Automotive Assembly outlook, PwC expects the M&A markets to continue to stay strong as companies continue to use M&A to drive efficiencies, grow market share, and expand their geographic footprint. As regulations around safety and fuel economy change, we see M&A playing an increasingly vital role in the development and integration of new technologies into vehicles. Shifting consumer preferences toward a sharing economy are driving increased investments in electronics and alternative forms of mobility. Automotive is quickly becoming the largest consumer electronic and a new mobility industry is emerging. As a result, we expect increased investments in this new sharing economy as well as in electronics and mobility services. Joint ventures and strategic alliances will ramp up, especially related to cross-border transactions, as traditional vehicle manufacturers and suppliers look to invest in mobility while managing risk. Megadeal activity will likely continue as trade buyers continue to maintain high levels of cash and PE funds have significant funds available. Within the U.S., shareholder activism is the new norm. Driving value 13 2015 Automotive M&A Insights A plateau for the automotive industry? As the automotive M&A activity returns to 2007 & 2008 levels, some experts wonder if the industry can continue to grow, before running into a cyclical downturn. Several automotive manufacturers experienced record sales, particular in the U.S. during 2015, begging the question of how often records can be broken. The next few years will be a crucial for automotive companies to understand and predict the market trends in order to avoid inventory build-up and other issues faced in 2007 & 2008. It is more important now than ever before for automotive companies to be agile and responsive to consumer demands for technology and other features. Automotive companies have invested in lower-emission cars as well as leveraging technology to create more of an “ultimate connected car”. These tech-boosted vehicles may help decrease cyclical downturns as consumers with higher disposable income become interested and buying habits change. More elbow-grease needed for autonomous cars Experts predict that the automotive industry will change more in the next few years, than any other time in the industry. As automotive companies plan their moves regarding new technologies around connected and autonomous vehicles, business models across the industry will likely evolve over the next several years. Driving value 14 2015 Automotive M&A Insights Contact us To have a deeper discussion about our point of view on automotive M&A, please contact: Authors Automotive leadership Jeff Zaleski PwC US, US Automotive Deals Leader Richard Hanna PwC US, Global Automotive Leader Hitoshi Kiuchi PwC, Japan, Asia Pacific Automotive Leader [email protected] +1 (313) 394 3525 [email protected] +1 (313) 394 3450 [email protected] +81 (0)80 3158 6934 Christopher Becker PwC US, Senior Associate, Automotive Deals Felix Kuhnert PwC Germany, European Automotive Leader and Global Automotive Advisory Leader Evan Hirsh PwC US, US Automotive Advisory Leader [email protected] +1 (313) 394 3237 [email protected] +49 (711) 25034 3309 [email protected] +1 (312) 578 4725 Automotive transaction services Humberto Tognelli Brazil Steven Perrin France Taizo Iwashima Japan [email protected] +55 (11) 3674 3855 [email protected] +33 (0)156 578 296 [email protected] +81 (3) 6266 5572 Damiano Peluso Canada Martin Schwarzer Germany Jason Wakelam UK [email protected] +1 (416) 814 5776 [email protected] +49 (0) 69 9585 5667 [email protected] +44 (0) 77 1471 1133 Leon Qian China Sanjeev Krishan India Paul Elie US [email protected] +86 (10) 6533 2940 [email protected] +91 (12) 4330 6017 [email protected] +1 (313) 394 3517 Tang Xun China Francesco Giordano Italy [email protected] +86 (21) 2323 3396 [email protected] +39 348 1505447 Driving value 15 2015 Automotive M&A Insights About PwC’s Automotive Practice PwC’s global automotive practice leverages its extensive experience in the industry to help companies solve complex business challenges with efficiency and quality. One of PwC’s global automotive practice’s key competitive advantages is Autofacts®, a team of automotive industry specialists dedicated to ongoing analysis of sector trends. Autofacts provides our team of more than 5,000 automotive professionals and our clients with data and analysis to assess implications make recommendations, and support decisions to compete in the global marketplace. About the Deals Practice The PwC’s Deals practice provides due diligence on both the buy and sell side of a deal, along with advice on M&A strategy, valuation, accounting, financial reporting, and capital raising. For companies in distressed situations, we advise on crisis avoidance, financial and operational restructuring and bankruptcy. With approximately 1,000 deal professionals in 16 cities in the US and over 6,000 deal professionals in over 90 countries, experienced teams are deployed with deep industry and local market knowledge, and technical experience tailored to each client’s situation. Our field-proven, globally consistent, controlled deal process helps clients decrease minimize their risks, progress with the right deals, and capture value both at the deal table and after the deal closes. About Autofacts® Autofacts is a key strategic asset of PwC’s global automotive practice. Fully integrated with PwC’s more than 5,000 global automotive professionals, Autofacts provides ongoing auto industry analysis our clients use to shape business strategy, assess implications and support a variety of operational decisions. The Autofacts team also draws from the strengths of PwC’s marketing, sales and financial services groups to support other key areas of automotive companies’ functions. Since 1985, our market-tested approach, diverse service offerings and dedication to client service have made Autofacts a trusted advisor throughout the industry. For more information, visit www.autofacts.com. Visit our automotive industry website at www.pwc.com/auto PwC helps organisations and individuals create the value they’re looking for. We’re a network of firms in 157 countries with more than 195,000 people who are committed to delivering quality in assurance, tax and advisory services. Tell us what matters to you and find out more by visiting us at www.pwc.com. Learn more about PwC by following us online: @PwC_LLP, YouTube, LinkedIn, Facebook and Google +. This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. 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