27 Jul, 2018

Working with Shanghai-Based AMInsight Consulting, Educating on U.S. Aftermarket

27 Jul, 2018

Hart Marx Advisors and Marx Group Works with Shanghai-Based AMInsight Consulting to Educate Chinese Automotive Aftermarket Business Leaders on U.S. Aftermarket, Establishing Potential for Global Partnerships

San Rafael, Calif. (July 23, 2018) – Tom Marx of Hart Marx Advisors and Marx Group and other industry leaders met with Chinese aftermarket business leaders to educate and discuss the fundamentals of mergers and acquisitions as well as marketing within the U.S. automotive aftermarket.

Shanghai’s AMInsight Consulting, in partnership with Dave Barbeau of Barbeau Consulting, designed and delivered this program to representatives from 11 Chinese aftermarket companies, comprised primarily of suppliers and distributors.

“Meeting with the AMInsight team enables great opportunities for everyone involved,” Marx said. “It makes it possible to further global relationships, expands the understanding of each unique marketplace and offers the potential for successful investment from both sides.”

The business leaders visited multiple aftermarket businesses during their stay in the U.S., including the National PRONTO Association, XL Parts, Technical Chemical Company, Automotive Service Association (ASA), and other aftermarket operations. They also visited AutoZone, NAPA and Advance Auto Store locations in the Dallas area. Brian Cruickshank of the University of the Aftermarket presented the role that the University plays to educate present and future members of the industry.

Shanghai-based AMInsight Consulting serves as a professional exchange platform between the Chinese automotive aftermarket and other global manufacturers, distributors, buying groups and service providers.

“We are pleased to provide this opportunity to increase the knowledge of the U.S. aftermarket for these business leaders, as there is so much to learn from a business segment that represents thousands of companies and hundreds of billions of dollars in commerce,” said Maggie Xu, co-founder, AMInsight.

“These exciting new connections for Hart Marx Advisors and Marx Group present opportunities for both current and potential American and Chinese clients who have interest in developing business both in their home markets and abroad,” Barbeau said.

Marx focused on valuation multiples and their determining factors, transaction overview from both buyer’s and seller’s perspective, as well as case studies detailing common challenges that business owners face and the benefits of successfully implemented merging and acquisition and organic business growth strategies.

The marketing portion highlighted the importance of establishing and supporting a brand in the U.S. aftermarket so that companies are respected by technicians and independent repair shops. Marx stated the most successful companies invest in marketing strategies that position their brands for growth, not only to build awareness but also to become the brands that automotive professionals request.