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Who’s next in the Car Makers takeover carousel?

Published on: 3/9/2016

With news of Peugeot taking over GM’s European operations in a complex multi-billion-dollar deal, M&A analysts Plimsoll have picked out 2 other companies that are highly attractive takeover targets for very different reasons. Could they be the next big news story in the Global Car market?

Plimsoll produces a detailed study on the world’s 100 largest Car Manufacturers and specialises in picking companies with high potential for acquisition. The two best targets have the following characteristics:

Target One

This company is an emerging star in the Global market. Although independently owned, potential acquirers would need to pay a high premium to acquire this outstanding company. Here are some of the key findings:

  • Doubled in size since 2012
  • Consistent profit margins of more than 10% in each of the last 4 years
  • Outstanding return on assets
  • Not part of a larger parent group
  • Significant player in its established markets

Target Two

This long-established company would benefit from a fresh strategy due to continued decline in sales and falling profitability. While presently owned by a major Corporation, it’s ongoing decline could make it a viable target for another company looking for a target they could turn around. Here are some key findings:

  • Pre-tax profits, though falling, are still higher than the industry average
  • The value of the company has declined over the past 4 years
  • It has a large amount of cash on its balance sheet
  • It is among the 10 companies returning the best sales from assets
  • Its Trading Profits are among the best in the Global market

The identity of these companies is revealed in the new Plimsoll Analysis. This special report includes an individual valuation, financial assessment and acquisition rating for each of the world’s biggest Car companies.

If you are on the lookout for the next big takeover in the Global Car market or just interested in the latest developments in this highly competitive, ever changing market, please click here to visit the dedicated part of our website.