WHAT AUTOMOTIVE SEGMENTS ARE ATTRACTIVE TO INVESTORS?
I recently came across the concept of search funds and see it potentially as a means for me to follow my mission. I am very passionate about making an impact in the automotive industry through ETA, as I see so many opportunities to improve, but have always struggled to figure out where the capital would come from. Now that I have found search funds as a potential option, especially for someone in my position (early 2022 MBA graduate), I have dug in and see serious consistency throughout investment criteria.
With that in mind, I looking at a variety of different automotive industry subsegments, and could use some inspiration for what makes an attractive investment to search fund investors within the automotive industry. What sort of companies in automotive fit typical investment criteria (recurring revenue, fragmented, growing) or could I drop one of those criteria to do what I do best with automotive services and generate higher returns?