Shaw & Co, the specialist corporate finance advisory firm, has launched an interim analysis of the Automotive, Transport & Logistics (ATL) industry.

The report, which features a summary of M&A deals that have been completed since the launch of Shaw & Co’s annual ATL report last October, provides SMEs with valuable insight regarding their latest acquisition prospects. 

The report’s key findings include:

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Buoyant M&A Activity:

Deal activity has been healthy in the ATL industry in the last year, partly as a result of deals being put on hold early in the pandemic. There were 80 M&A deals with an average deal value (adjusted for anomalies) of £22m.

Trouble on the Horizon?:

A number of headwinds – rising inflation and the worsening geopolitical situation – mean that the level of M&A activity that has been seen in the last year may not continue. Confidence is key to dealmaking, and uncertain economic conditions can cause buyers to ‘pull the plug’.

Seize the Moment:

If an exit is desired and your business is performing well, we recommend giving consideration to launching a sale process this year rather than waiting until 2023 before current events flow through to the wider economy.

UK Dominance:

The majority of buyers (79%) are based in the UK or have a significant presence in the country. However there are still foreign acquirors looking to invest in UK companies.

Regional Hotbeds:

The South East proved popular for deal activity, especially for automotive parts and accessories retailers, with 41% taking place in the region. There were also a large proportion of deals within the North of England.

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A full copy of the report is available for free download here.