The value of an automotive business
What is the real value of your automotive company? What is your automotive business worth? What multiples are used in the automotive industry? What does a buyer appreciate in your company?
These are questions that could interest you as a seller of an automotive company. Of course, you want to maximize the company’s value, and have a good starting point in the discussions with the buyer, but how can you find out how much you can ask for a share in your business?
Principles of valuation of an automotive company
The valuation of an automotive company is a very important question that every automotive company owner might be interested in. There is the technical part as well as the art of a business valuation. There are a lot of factors that come into consideration during the valuation of an automotive company.
There are multiple valuation methods currently used in the M&A market. The DCF method (discounted cash-flow method) is sometimes used. More often, the way to value a company is to take industry multiples (mostly EBITDA) and use these on the company’s financials to come up with an estimated valuation. This is the most common method. Visit valuation methods page for your company for details about the main valuation methods.
The valuation depends significantly on subindustry. You will get different valuation multiple and result for automobile dealership company, Tier1 or Tier-2 automotive suppliers, or automotive distributors.
Try our practical on-line automotive company valuation tool
We have developed an online tool, that can give you a basic idea of how much your automotive company is worth. If you want to get a preliminary-level indication of the value of your business, please fill out the model below. You will need just the basic financials from the last two years.
As a result, you will get a rough indication of the enterprise value for your company.
Information about the value of your automotive company
Feel free to contact us if you have any questions concerning the value of your automotive company. A competent team of appraisers is ready to assist you. We have an automotive industry expert, who will assist you with the company valuation. We are able to get a valuation for any automotive subindustry:
- Valuation of an automotive manufacturer
- Valuation of an automotive distributor
- Valuation of a tool and mould company
- Valuation of an interior parts manufacturer
Valuations are a particularly important step in the M&A process. It is wise to gain as much knowledge about the process to have a better overview. For this reason, we advise you to read one of the pages below:
The process of selling a business
The process of buying a business
We are here to help you with setting a market value for your automotive company.
There is no guarantee that you will find a buyer for this valuation. However, we believe that for every company there is a buyer if the price is right.