MandA in the Automotive Supplier Sector - Issues and Trends
Released on = July 3, 2007, 11:24 pm
Press Release Author = Bharat Book Bureau
Industry = Automotive
Press Release Summary = M&A in the Automotive Supplier Sector: Issues and Trends : This is the definitive assessment and forecast of the state of the automotive supply chain globally. This reports is your best-available source of understanding, insight and analysis of the automotive supply base. The full report is 62 pages in length.
Press Release Body = Recent and ongoing events in the North American and European auto supplier sector have once again highlighted the important role merger and acquisition (M&A) activity can play in the industry's restructuring. Current industry challenges suggest an intensification of this activity now appears possible in 2006/07, representing continuation of an evolution that has been apparent for over ten years. The dynamic nature of this trend has resulted in a significant realignment of the global supplier sector, as players have exited and entered the business, either partially or completely, willingly or reluctantly, or used M&A to redefine and sharpen corporate strategy around core businesses.
Recent high-profile bankruptcies at a number of major North American suppliers have pinpointed flawed business models and significant legacy issues that continue to damage financial performance, the result of which may well be the need for some further dramatic business restructuring. This could well give rise to significant additional M&A opportunities that, in turn, are attracting new visionary financial players, confident of their abilities to drive through major structural change in some sectors, to the arena.
Few days pass without further news of actual or potential restructuring moves involving the purchase or sale of assets between differing parties. Furthermore, this public domain information is probably just the tip of the iceberg, with further extensive behind-the-scenes activity also being discussed, evaluated and analysed. This activity encompasses suppliers at all tiers (not just tier 1), OEMs and parties with predominantly financial interests, most notably the private equity players. This complexity of activity makes analysis of overall trends difficult, with many deal drivers apparent, but certain themes have emerged.
One such theme is the continuing desire of many suppliers, especially the larger and more diversified tier 1 vendors, to whittle down their structures to focus on 'core' operations only.
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