There were 821 middle market automotive M&A transactions in 2021, a 38% increase from 2020. Automotive M&A activity in Q4 2021 represented the highest quarterly total in the Stout database in a 4-year period, with 249 automotive transactions in Q4 2021 — up 18% from Q4 2020.
Positive momentum continues into 2022, which is expected to be another strong year for M&A activity. There continues to be strong demand from both strategic and financial buyers despite the continuation of COVID-19 conditions and lingering supply chain constraints. Whether an automotive supplier finds itself in a healthy or challenged post-COVID environment, M&A and restructuring activity over the next 24 months could be imperative in positioning suppliers for longer-term success.