AUTOMOTIVE MERGERS AND ACQUISITIONS
Though a generalist firm by definition, Capstone has focused on one industry since 1989 – the automotive industry. During that time, we have:
- performed investment banking, strategic consulting and other financial advisory services to more than 300 automotive clients;
- rescued trouble automotive companies;
- been consultants to industry, associations and private equity firms.
Because of our unique position, we have accumulated unrivaled data and information resources on the industry which is used by our clients to assess potential buyers, strategic acquisitions and current portfolio companies. We allocated significant funds to designing and developing a proprietary database focused on the automotive industry, which now contains almost 15,000 entities worldwide. In fact, we have compared this database and international information to those developed by giant data specialists, and ours has always won.
A nationally-recognized authority and frequent speaker in the automotive industry, Capstone founder Dan Smith has led our firm in representing manufacturers and distributors throughout this industry for more than 25 years. Our experience encompasses all segments of the auto industry, including:
- Hard Parts
We are well-versed in all aspects of the industry, including:
- Diverse types of manufacturing
- The multifarious distribution channels (auto retailers, mass merchandisers, warehouse distributors, jobbers, dealers, installers, etc.)
- Industry trends and analysis
Capstone maintains close relationships with thousands of automotive executives, owners, strategic buyers, financial buyers, investors and lenders. And, in recognition of our unique leadership position, we are often called upon to share our expertise and insight — by financial institutions looking to be educated on the market, by the trade press and media, and for industry research and seminars.
So for our clients looking to sell their automotive company, the significance of this experience is that:
- We need no education or buyer research, since we are on a first name basis with most all buyers;
- We don’t need to approach 600 potential buyers, which creates an unnecessary disruptive process, but usually only need to call 3-10 prospects to obtain the an optimal valuation;
- We generally have a shorter time frame and can close transactions quicker;
- We are better able to describe and present a company’s value drivers; and
- Most importantly, we know how to position a company to obtain the optimal price from industry buyers.