The Canadian automotive industry includes all vehicle and automobile equipment manufacturers and wholesalers as well as car dealerships and retailers of light vehicles, automobiles, trucks, buses and motorhomes. The industry is comprised of a few major auto manufacturers like Chrysler, General Motors and Ford which control the pace of the industry. Key suppliers for this industry include steel, aluminum and other raw material manufacturers along with original equipment manufacturers who design and build individual parts like engines, batteries and electronic parts for larger auto manufacturers.
Most major manufacturers have a B2B model with typical customers being dealerships, wholesale retailers, and rental companies, which in turn have B2C models. The industry is currently in its mature stage and is characterized by consolidation and heightened M&A activity. The Canadian auto industry is moderately regulated and manufacturers must comply with safety standards. Being a highly globalized industry, trade regulations play an influential role. The industry is primarily driven by consumer discretionary income which generates demand for vehicles.
Selling an Automotive Company
Sales – Strong sales is an indication of an automotive company’s value. They represent a strong brand reputation, as well as high quality products and innovative designs. Major industry players typically exhibit strong sales and are able to keep it up with the ongoing technological innovations.
Mature Supply Chains – An automotive company relies on many other industry players in order to bring one product to customers. A well-established supply chain ensures production efficiency and low costs, and subsequently increases margins.
With 40 years of combined experience serving businesses within Toronto, Ontario, and abroad, the Beacon transaction team has extensive knowledge and experience successfully working for several automotive companies from a variety of industries. Whether it be a valuation or sale, our team can provide expertise and resources found only at larger corporations, paired with the personalized touch of our M&A Advisory team. Contact us today to get in touch with one of our advisors.