Value Drivers in M&A and How to Compete in 2022

There has been a flurry of mergers and acquisitions for dealerships and service providers. M&A activity was at a record high level in 2021. An estimated 350 dealerships changed ownership, over 550 AutoTech companies were funded or acquired, and M&A continued its rapid pace in the F&I sector. Notably, these companies are trading at record valuations.

What will drive value in 2022? High margins, scalability, and reputation are critical factors. Companies that embrace technology and digitization in operations and marketing have higher margins, can scale quickly, and have a better customer experience, leading to higher valuations when they sell. Gina Cocking will explore the drivers of value in M&A in this sector and what companies can do now to prepare for a transaction in the future.

Key Takeaways:

  • M&A activity will continue at record levels
  • To be in the top tier of companies today, you must embrace technology and digitization to reach potential customers and enhance the customer experience
  • In the sale of a company, differentiation resulting from technology and digitization drives value
Auto Finance Workshop