May 07, 2020
Despite this challenging environment, there is reason to believe the automotive aftermarket space will rebound quickly as the economy re-opens.
The Covid-19 pandemic turned America—a nation long committed to easy mobility—upside down. The reliance on, and need for, driving has dramatically declined, and new vehicle production has ground to a halt, leaving no doubt that the impact on M&A within this space will go well beyond this black swan event.
In particular, the impact on the automotive aftermarket—and the prospects for the industry in the months and years ahead—make for a particularly compelling case study. While the automotive aftermarket space is certainly not immune to the coronavirus, we are seeing that companies with a strong direct-to-consumer (DTC) e-commerce foundation and those catering to enthusiasts are faring better than others.
Mergers and Acquisitions features an article authored by Scott Buschmann, Partner at Kian, as he shares perspectives on the current and future impacts of COVID-19 on automotive aftermarket companies and why a strong digital platform is no longer optional.
Click here to read the full article entitled "Auto Parts Sellers Turn to E-commerce, as Coronavirus Quarantine Keep Drivers off the Roads."
While the automotive aftermarket space is certainly not immune to the coronavirus, we are seeing that companies with a strong direct-to-consumer (DTC) e-commerce foundation and those catering to enthusiasts are faring better than others.
