Marktlink → Sectors → Industrials → Automotive

  • Updated February 27, 2026

Electrification disrupts traditional supply chains

The automotive M&A market is the most polarised in our portfolio. EV supply chain companies, aftermarket specialists, and automotive software engineers attract premium valuations and multiple bidders. Traditional ICE-dependent suppliers face a shrinking buyer pool and compressed multiples. The dividing line is clear: transition-ready or left behind.

Jeroen van den Berg

Sector Lead Consumer • 14 years • 90+ transactions

“Automotive is the most polarised sector in our portfolio right now. EV supply chain companies and aftermarket specialists are seeing strong buyer interest at multiples we rarely saw in automotive. Traditional ICE-dependent Tier 1 and 2 suppliers? We struggle to generate competitive processes. The question is no longer if you transition, but how fast.”

Sector at a Glance

  • Updated March 2, 2026
VALUATION RANGE

0.0x – 0x

↓ -0.2x vs 2024

EBITDA Multiple
Deals in 2025

0

Active Buyers

0+

Enter your figures → see your position instantly

Valuation Development

Automotive valuations peaked 2021-22 on supply chain premiums, corrected as EV transition pressure separated winners from losers.

5-Year Multiple Range

2021 PEAK

0x avg

Post-COVID rebound, chip shortage premium

2023 DIP

0.0x avg

Correction: EV transition pressure

2025 NOW

0.0x avg

Tariff impact, selective recovery

Subsegment Analysis

EV Supply Chain & Electrification

[XX] deals in 2025

Multiple Range

0x  – 0x

+0.5x
Buyer Mix
PE 35% • Strategic 55%
Key Valuation Driver
Battery/powertrain positioning and OEM contract pipeline
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Aftermarket & Parts

[XX] deals in 2025

Multiple Range

0.0x – 0.0x

+0.2x
Buyer Mix
PE 40% • Strategic 50%
Key Valuation Driver
Recurring revenue, brand, and distribution network
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Engineering & Tech Services

[XX] deals in 2025

Multiple Range

0.0x – 0x

+0.3x
Buyer Mix
PE 30% • Strategic 55%
Key Valuation Driver
Software-defined vehicle expertise and OEM relationships
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Traditional ICE Supply (Tier 1-2)

[XX] deals in 2025

Multiple Range

0x  – 0.0x

-0.4x
Buyer Mix
PE 10% • Strategic 75%
Key Valuation Driver
Cash flow stability and transition roadmap credibility
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Buyer Landscape 2025

Overall Buyer Type Distribution

  • What drives premium valuations

EV/electrification supply chain positioning

+0.0x to +0.0x

Software-defined vehicle / ADAS capability

+0.0x to +0.0x

Aftermarket recurring revenue and brand

+0.0x to +0.0x

OEM diversification (3+ major customers)

+0.0x to +0.0x

Credible ICE-to-EV transition roadmap

+0.0x to +0.0x

Which of these buyers match your firm?

BuyersChecker analyzes your profile against our active buyer database.

Recent Transactions

Anonymized Marktlink cases showing the EV premium vs ICE discount in automotive M&A.

EV Premium

EV Supply Chain

Manufacturer of precision components for EV battery packs and thermal management systems, supplying two major European OEMs with growing order book

REVENUE

€0.0M

EBITDA

€0.0M

MULTIPLE

0.0x

DURATION

0 months

Battery pack components
2 major OEM relationships
Growing EV order book

Key Insight

EV supply chain positioning was the dominant value driver. The Asian buyer paid a significant premium for European manufacturing capability and established OEM relationships. The growing order book justified forward-looking valuation.

Platform Premium

Aftermarket

Multi-location automotive parts distribution company with proprietary e-commerce platform, strong brand recognition, and workshop network across Benelux

REVENUE

€0.0M

EBITDA

€0.0M

MULTIPLE

0.0x

DURATION

0 months

E-commerce platform
Workshop network
55% recurring revenue

Key Insight

The PE buyer valued the e-commerce platform and workshop network as a scalable consolidation platform. Aftermarket is PE-friendly due to recurring revenue, fragmentation, and resilience through economic cycles.

Tech Premium

Engineering Services

Automotive engineering services firm specialising in ADAS and autonomous driving software validation, serving premium German OEMs

REVENUE

€0.0M

EBITDA

€0.0M

MULTIPLE

0.0x

DURATION

0 months

ADAS specialisation
Premium OEM clients
60% retainer revenue

Key Insight

Software-defined vehicle expertise created exceptional buyer demand. 12 interested parties for a EUR 7M revenue company is unusual in automotive. The ADAS specialisation and German OEM relationships were valued as strategic assets.

ICE Discount

Traditional ICE

Precision machining company producing transmission and engine components for European Tier 1 suppliers, 95% ICE-dependent with no EV product roadmap

REVENUE

€0.0M

EBITDA

€0.0M

MULTIPLE

0.0x

DURATION

0 months

95% ICE-dependent
No EV roadmap
Limited buyer pool

Key Insight

Without an EV transition roadmap, the buyer pool was limited to two parties. The 14-month process was the longest in our recent automotive portfolio. Precision machining capability was valued but discounted for ICE dependency. A credible transition plan would have doubled the buyer interest.

Recognize yourself in these cases? Compare your situation.

Market Trends 2025

EV supply chain premium widens

EV supply chain companies achieve multiples roughly double those of traditional ICE suppliers. Powertrain and electronics dominate M&A transactions as buyers pursue software-defined vehicles and electrification.

Source: PwC Automotive Outlook 2026, Clearwater CF

~0x

EV vs ICE valuation gap

Traditional automotive IM&A share declining

Industrial Manufacturing and Automotive deal share in DACH dropped from 35% to 18% in H1 2025. Tariff concerns and ICE transition uncertainty are driving buyers toward less cyclical sectors.

Source: PwC M&A Trends DACH H1 2025

0%

DACH deal share (was 35%)

Aftermarket resilience attracts PE

Aftermarket and parts distribution attract PE due to recurring revenue, fragmentation for roll-ups, and economic cycle resilience. PE-backed platforms are consolidating regional distributors.

Source: Dealsuite, BGL Insider Report

0%

PE share of aftermarket deals

Supplier distress improving but tariff risk looms

Automotive supplier distress improved from 31% to 24% in 2025 through cost control and pricing discipline. However, tariff escalations and OEM volume shifts could quickly reverse this improvement.

Source: PwC Automotive Outlook 2026

0%

suppliers in distress (was 31%)

What This Means for You

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Industry Report 2025

Everything on this page, plus: 12 additional deal cases, detailed subsegment analysis, and 2026 outlook.

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