Combuyn #11

The development of the German automotive supply industry is characterised by far-reaching changes. The industry is going through a phase of unprecedented transformation, driven by the shift towards electromobility, digitalisation and sustainability.

In recent years, the process technology sector for the food, beverage and pharmaceutical industries, as a sub-sector of mechanical engineering or the industrials sector, has occasionally been characterised by a certain sluggishness in the M&A environment. The reason for this is that the number of larger transactions
(> EUR 1 billion) in this sector has been manageable.

The Standalone Factory Model - A case study for private equity companies: The Standalone Factory Model is an innovative approach to the design and implementation of M&A deals. A core feature of the Standalone Factory Model is the shortening of TSA durations by converting M&A-induced TSAs into Service Level Agreements (SLAs), realised through the use of strategic outsourcing agreements.

With an 11% share of the Austrian M&A market, the Industrial & Automotive sectors hold a significantly higher importance compared to international M&A markets. Especially diversification and expansion strategies, as well as structural changes, have shaped the M&A activities in these sectors over the past decade. Despite many current challenges, a stable M&A dynamic is expected in the medium to long term.

M&A activity in EMEA got off to a slower start this year than in 2022 and 2023, but the figures for 2024 are promising: although the volume in the first half of the year was 14% below the previous year, the value of transactions rose by 30.6%.