Growing Private Equity Opportunities in the Automotive Aftermarket

Sep 28, 2022 8:13:42 AM | News Growing Private Equity Opportunities in the Automotive Aftermarket

The automotive aftermarket represents an industry to watch for middle-market private equity deal flow and M&A deal origination opportunities. |

Amid myriad external pressures, U.S. second quarter automotive sales showed steep declines from major auto manufacturers, with just four manufacturers posting growth in sales revenue.

Jaguar Land Rover took the unenviable position with the steepest decline of 51.9%, with Honda on its heels, dropping 50.7%. The average reduction across all brands was approximately -20%.

The four manufacturers posting growth included Tesla (+53%), Mercedes (+6.9%), Porsche (+2.8%), and Ford (+1.8%).
Fewer cars available for purchase and less purchasing power for the consumers means people will be hanging onto their current (“used”) vehicles for longer, which would buoy the aftermarket parts and services industry.

This industry trend could mean an increase in the pace of M&A deal flow transactions, add-ons, and roll-ups in this sector.
Private equity firms are no strangers to this market, as the latest data and report from Private Equity Info ( ) illustrates.

Considering external factors such as inflation, rising interest rates, chip shortages, and continued supply chain constraints, what do we need to see for a rebound in new car sales here? Likely a combination of improvements, but perhaps the inflation domino falling first could assuage the others in short order.

Trusight, LLC is a buy-side deal origination service for private equity firms, investment banks, family office investors, and strategic investors.  We work with your team to expand your deal origination search for target acquisitions and to increase deal flow.

Dan Mahoney

Written By: Dan Mahoney

Dan is a Co-Founder and Managing Director at TruSight, LLC leading the company strategy and client engagement.