The renowned German online retailer of automotive parts is looking to make strategic acquisitions that could help strengthen its B2B segment. This information was announced by the AUTODOC CEO, Dmitry Zadorozhny, in a conversation with Mergermarket.
According to CEO Dmitry Zadorozhny, AUTODOC, as a company, remains committed to organic growth, and so he suggests that it could make potential acquisitions to target strengthening its presence in the B2B sector or diversify its toolkit. But this is not something they are planning on doing at the instance.
To make things clearer, the CFO of AUTODOC proceeded to add that the size of their potential targets would depend on the specific opportunity that presents itself and could involve a deal value of anywhere upwards of several million euros based on the value the target acquisition would add to AutoDoc, rather than just the size of the business (size of the target acquisition).
However, the CEO was quick to point out that AUTODOC has not actively started looking for these acquisitions at the moment – this is something they intend to do, but not so fast, so they have yet to pursue any targets thus far.
But, in a presentation shared by the company, in 2023 (last year), AUTODOC’s 2023 revenues exceeded EUR 1.3 billion with an adjusted EBITDA margin surpassing 10%. This company data shows that AUTODOC is definitely progressing smoothly even without any acquisition yet.
Speaking on the company’s expansion, CEO Zadorozhny indicates a preference for strengthening the company’s position in existing markets, rather than venturing into new ones.
CFO Schmidt, in the joint interview, went on to highlight that the company is exploring opportunities in new territories, predicting the US market could be the next potential territory.
Furthermore, Zadorozhny points out that the company needs to improve on its B2B segment, which, at the moment, only contributes less than 1% of the company’s revenues. But then again, he mentioned that the company’s B2B segment could account for more than 1% of revenues this year, owing to the improvements that are already in place.
Earlier this year, in April, AUTODOC made a press release to announce it had secured a minority stake investment from Apollo funds and institutional investors, valuing the equity at EUR 2.3 billion. Schmidt reveals that the investment was in the range of “a couple of hundred million euros,” but the actual size was not revealed.
Continuing in the interview, both CEO Dmitry Zadorozhny and CFO Schmidt took time to discuss some vital points in AUTODOC’s possible line of action in business expansion.
The IPO Potential
CFO Schmidt discussed the company’s readiness for a potential IPO, mentioning ongoing internal preparations but without specifying a timeline. He highlights the going with the company’s strong financial performance, debt-free status, and impressive growth metrics, an IPO would appeal to many investors.
CEO Zadorozhny adds that an IPO is being considered to improve the company’s brand visibility and access financing options, although it’s not an immediate necessity. The company intends to wait for favorable market conditions before proceeding with a listing.
Possible Business Model Adjustments
CEO Zadorozhny notes that AUTODOC is planning a service model that will see the business’s existing model change in the future; this could mean a transition from a product-centric business to a service-oriented model. Launching AUTODOC PRO for B2B clients already indicates this possible twist in the company’s business models, and as said earlier, there are plans for the company to further expand across Europe.
What Else is There to Know?
“The digitalisation of the independent automotive aftermarket is the largest growth driver,” Schmidt said. He also went further to note that online sales account for only 10% of the independent automotive aftermarket in Europe according to various market studies, so, there is plenty of room for growth.
Founded in 2008, AUTODOC is one of the biggest largest online auto parts sellers, and operates in about 27 countries across the Europe continent, with a workforce of over 4,000 employees. According to the company’s data, it has over 7.4m active customers.
Obviously, AUTODOC will capitalize on the digitalization of the automotive aftermarket, leveraging its market leadership position and extensive customer base across 27 European countries.
