M&A and advanced motor vehicle technology will continue to have a major impact on the aftermarket, according to partners from Schwartz Advisors (SA), an M&A advisory and strategic planning firm. Two of the firm’s partners spoke on these topics at the California Automotive Wholesalers’ Association (CAWA) Summer Educational Forum, held on June 21-22 in Newport Beach, California.
Rick Schwartz, the firm’s CEO, and Derek Kaufman, an SA managing partner, were featured speakers at the CAWA event. In their presentations, Schwartz and Kaufman outlined how technology and M&A are shaping the aftermarket of the future.
Schwartz’s talk focused on the tremendous amount of M&A activity going on in the aftermarket at all levels. He mentioned that the pace of these mergers and acquisitions will likely increase. As a barometer, he noted that 2017 represented a record number of aftermarket M&A transactions.
For those businesses considering a potential sale, Schwartz offered some advice: Don’t wait. Even if you’re not ready to sell, it’s best to start thinking about it now. The best time to think about exiting a business is before circumstances force you to make a move.
“Optimize the transaction on your terms by being prepared,” he advised.
Following Schwartz’s talk, Kaufman discussed a wide range of technologies that will transform vehicles and the driving experience over the next three to five years. Kaufman said this technology will have a significant impact on the way vehicles are used, how they are serviced and the kinds of products distributors stock.
The Summer Educational Forum was part of CAWA’s two-day leadership event. The forum included professional education for the CAWA board of directors, manufacturer advisory council, general membership, Young Auto Care Networking Group (YANG) members and industry guests.