Financial Institutions

IHS Automotive Consulting helps finance professionals involved in lending, investing, buying and selling within the automotive industry with these types of concerns and many more:

• Financial distress in the industry
• Bankruptcies
• Credit downgrades
• Potential acquisitions
• Likely breakups
• Investment opportunities

IHS Automotive Consulting supports the investment and banking community with manufacturer and supplier assessment solutions that include:

• Market Power Play
  Optimize your portfolio and analyze your competition. We conduct an analytical model comparing your company's product line-up relative to that of your competitors, using the principal basis of competition in a specific market. The mathematical Proximity Model we develop incorporates the target product or products and the competitive data set for each of the players within that market, including data from IHS Automotive, client-provided information and input from project-specific research undertaken by us or one of our strategic partners. IHS Automotive consultants use the model to assess your product's relative strengths or weaknesses and to identify unique opportunities in target markets.

• Business Portfolio Evaluation
  Get timely analysis and supporting documents surrounding the strengths and weaknesses of an auto supplier's book of business. You will receive a program risk analysis assessment of your portfolio in which we rate the programs either green (positive), yellow (some concerns or uncertainty) or red (negative), based on on short-, intermediate- and long-term criteria.

• Technology Forecasts
  Our consultants can perform an analysis for you relating to the evolution of the automotive market and individual companies. Leveraging our proprietary data and syndicated research, we can project the expected pathway a technology will take based on various factors.

• Impact Assessment
  Leverage the broad expertise across IHS to receive scenario-based impact assessments of regulatory policy on jobs, costs, the evolution of vehicles, components or technologies, as well as on the outlook for companies as a whole. Our reports are based on a combination of quantitative and qualitative analysis that can inform a policy change or suggest istrategies for seizing new opportunities or entering new markets

• Mergers & Acquisitions
  IHS Automotive consultants help buyers and sellers navigate each transaction stage, from pre-deal preparation to post-deal support. (See Due Diligence)

• Due Diligence Validation
  IHS Automotive Consulting can provide third-party due diligence valuation of a company's book of business for potential buyers and sellers. We analyze the industry outlook, examine relevant component trends and manufacturing processes and assess long-term customer viability and competitive pressures.

From the seller's standpoint:

We will produce content for the data room, including:

• Detailed analysis of the industry sub-segment
• Descriptions of the competitive landscape
• Outlooks for relevant technologies
• Product demand forecasts

From a potential purchaser's standpoint:

We will provide analyses similar to the data room, plus:

• SWOT analysis of the target firm and its major competitors
• Independent verification of the target firm's forecast assumptions

• Custom Market Sector Forecasts
  IHS puts several hundred econometric modelers at your service, providing off-the-shelf as well as custom-developed forecasts for virtually anything for which there is associated historical data. Use our forecasts to drive your business plans and to benchmark your corporate performance against competitors and the industry. We also develop regional-level market forecasts, where data is available, to assess your dealership or sales-office performance in specific market areas
• Supplier Deep Dive
  IHS Automotive can perform an extensive, data-driven analysis of a supplier covering a significant number of its vehicle programs with the objective of quantifying risk exposure and revenue forecasts. Our consultants leverage our vast component databases to give you a granular view of a supplier's full range of components and associated market share, with the ability to compare across component categories to make a complete portfolio assessment. This analysis provides a window into a supplier's strengths as well as future exposures to revenue volatility and changes in customer concentration.

Contact us for an exploratory meeting.

Recent examples of IHS Automotive Consulting for financial institutions include:

• Creation of a data room to sell a midsize auto supplier to a private equity firm
• Data and analysis support regarding the possible exit of a large tier one supplier from the North American market
• Due diligence assistance for a private equity firm participating in a major automaker funding initiative
• Advice on acquisition proposals for global auto suppliers
• Outlook for a major automaker for a European bank
• Potential acquisition scans for European and Asian auto suppliers
• Saving two distressed debt lenders several million dollars as the result of our recommendations regarding an investment in a bankrupt auto supplier