Market Overview

Private equity interest in the automotive and transportation sector remains strong despite rate hikes and tariff noise, and through the EV debate, electrification, automation and other technology-driven changes. Rather than pulling back, investors continue to show conviction in the sector, especially across services categories with essential demand, recurring revenue characteristics and room for consolidation.

For business owners, the implications are significant. The survey shows that automotive is no longer viewed as a fringe or opportunistic category by many buyers. The question is no longer whether buyers are interested – it is one of positioning and timing.

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Inside The Report

• Automotive Is A Priority: The report opens with the threshold question for any seller: is the buyer pool real? Based on responses from 60 firms, the answer is yes. Nearly all respondents reported higher interest in automotive than in the average other industry. Of the firms surveyed, 33 already own automotive and transportation platforms, 15 are actively working to enter the sector, and 12 with no current exposure were still engaged enough to participate. Conviction is compounding as well: 39 of 60 respondents reported higher conviction in the sector than five years ago, and only three reported a decline. Looking ahead, half expect to increase their focus over the next 12 to 24 months, while just 5% expect to reduce it.
• Platform Demand Is Outpacing Bolt-On Demand: Sponsors are seeking new platform investments more than bolt-on acquisitions, with platform interest (68%) roughly double bolt-on interest (32%) – consistent with the significant dry powder waiting for deployment across the private equity landscape. For sellers, this matters because a well-positioned independent operator may be viewed as a platform candidate, not simply a bolt-on for an existing roll-up.
• Lower Middle Market Opportunities Are In Focus: Check sizes point directly toward the lower middle market. Median minimum platform thresholds sit at $5 million to $10 million of EBITDA, three of four firms will consider a new platform at $10 million of EBITDA or below, and only three firms require $25 million or more. Sponsors are establishing platforms earlier – and at smaller sizes – than many owners may assume, and there is a motivated buyer set for quality businesses of nearly all sizes.
• Demand Is Concentrated In Service-Led Verticals: Investor demand is not spread evenly across the aftermarket. The survey shows demand concentrating in service-led verticals, with Fleet Services, Value-Add Distribution, Tire & Auto Repair, Collision / Body Shop, ADAS / Calibration and Towing leading the field. These categories share essential, recurring demand and meaningful room for continued consolidation.
• Key Takeaways For Investors & Company Owners: Each section of the report closes with practical takeaways for both audiences. For investors: flexibility and creativity on minimum platform EBITDA thresholds can help circumvent the most competitive corner of the market, and awareness of relative vertical focus can help direct resources. For company owners: you have not missed the boat – broader investor interest in automotive continues to build – and your desired platform EBITDA can serve as a guide for continued-growth versus exit decisions.

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Survey Methodology

Buyer intent is one of the most important and least visible variables in automotive M&A. Owners often see multiples, headlines and completed transactions, but they do not always see what acquirers are actively mandated to buy next.

To help close that gap, Caruso & Co. surveyed the private equity community directly on priority, conviction, target verticals and check sizes. The 2026 edition reflects responses from 60 firms across a wide AUM spectrum, with responses weighted toward partner- and managing director-level participants. Firm names were withheld to preserve confidentiality.

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2026 Outlook

The 2026 Automotive Buyer Survey suggests that automotive and transportation remain highly attractive sectors for private equity, especially in fragmented, service-led categories where recurring demand, operational improvement, and consolidation potential can support long-term platform creation.

For owners considering a transaction, the survey provides a clearer view of the demand side of the market. Buyer activity remains broad, conviction is increasing and sponsors are actively looking for opportunities across a wide range of sizes and verticals.