46.5k
Times solved
Intermediate
Difficulty
Rating

Problem Definition

Our client is a French holding company with annual revenues of about €1 billion.

Their portfolio consists of different companies that are mostly in manufacturing industries such as the oil & gas industry and the automotive industry.They do not have a specific investment focus. They prefer to buy the best companies available that are also related to their existing businesses.

They are thinking about acquiring an auto parts dealer, OTOpart, and want to know whether you think it is a good idea.

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46.5k
Times solved
Intermediate
Difficulty
Do you have questions on this case? Ask our community!

Exhibits

Case Structure

Market Share

Profit Margin of Different Market

In the automotive market, profit margins are about 2%. In the auto parts market, the profit margin has been 8% for 5 years in a row.

Competitive Landscape

  • TaVoiture, the biggest auto parts player in France, has consistently increased its market share over the years. Last year, its market share was 45%
  • It has contracts with a few big car manufacturers to provide parts for their cars within the cars' warranties.
  • TaVoiture is highly profitable.