Automotive Aftermarket Market Update Q2 2023

Automotive

Aftermarket

Market Update

Q2 2023

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Decarbonization

Products and Services

Defense Energy Services and

Technology

Government Services

and Technology

Industrial Technology

Metals and Engineered

Materials

Packaging, Plastics, and

Paper

Security and Safety

Solutions

Specialty Distribution

a portfolio company of

has been acquired by

Sellside Advisor

has been acquired by

Sellside Advisor

a portfolio company of

has been acquired by

Sellside Advisor

has sold a majority interest in the

company to

Sellside Advisor

has acquired

a portfolio company of

Buyside Advisor

has been acquired by

Sellside Advisor

has been acquired by

Toyota Industries

Corporation

Sellside Advisor

has been acquired by

a portfolio company of

Sellside Advisor

Featured Transactions

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Sector-Specific Expertise

The automotive aftermarket sector, which operates within Houlihan Lokey’s

Industrials Group, has earned a reputation for providing superior service and

achieving outstanding results in M&A advisory, capital raising, restructuring, and

financial and valuation advisory services.

Our transaction quality and client work benefit from our company culture, where

senior financial professionals are highly engaged in the execution of client projects,

and from our experience as leaders in the market for more than a decade, which

has given our professionals valuable exposure to a variety of situations and

challenges.

 Car Wash

 Collision Repair and Other

Auto Services

 Commercial Vehicle Upfitting

 Hard Parts Distribution

 Lubricants, Coatings, and

Cleaning Chemicals

 Mechanical Repair

 Replacement Parts

 Off-Road Enthusiast Parts

 Performance Parts

 Quick Lube

 Retail and DTC E-Commerce

 Software and Shop

Management

Tombstones included herein represent transactions closed from 2008 forward.

AUTOMOTIVE AFTERMARKET TEAM

Leadership

Christian Lunny

Managing Director

[email protected]

+61 2 9662 9001

Hisashi Yoshimura

Managing Director

Hisashi.Yoshimura@HL.com

+81 80 4368 3472

Nicolas Zintl

Managing Director

[email protected]

+49 (0) 69 256 246 121

Cory Hebenstreit

Director

[email protected]om

+1 312.456.4704

a portfolio company of

has been acquired by

Sellside Co-Advisor

$40,000,000 HoldCo PIK Notes

Acquisition Financing

Exclusive Placement Agent

a portfolio company of

has been acquired by

a subsidiary of

Sellside Advisor

has been acquired by

Sellside & Financing Advisor

has been acquired by

a subsidiary of

Sellside Advisor

has successfully completed a $1.4

billion recapitalization, amending

and extending $860 million of 1L

credit facilities, equitizing $375mm

of unsecured notes and raising

$160 million of new money

Unsecured Noteholder Advisor

While Houlihan Lokey covers a broad range of automotive aftermarket subsectors, the Q2

2023 market update will focus on the enthusiast subsector, which serves consumers

upgrading the look or performance of their vehicles. The M&A market for enthusiast

businesses seems to have been rather constrained over the past year, and Houlihan Lokey

sees signs of optimism in 2H 2023 and beyond.

Despite SEMA estimating the specialty-equipment market growing at approximately 4% per

year, that growth has been inconsistent largely due to pandemic-related trends. Demand

accelerated in 2021, resulting in challenging year-over-year comparisons in 2022

exacerbated by supply chain challenges limiting product availability.

Houlihan Lokey analysis indicates that selected market participants’ demand concerns due

to rising interest rates are likely unfounded. Personal spending has historically been much

more strongly correlated to wages, which remain resilient in a job market with record-low

unemployment.

Because many upgrades are at the time of vehicle acquisition, whether new or “new to

you,” the slowdown in new vehicle production has provided an additional headwind that

seems to be clearing. Moreover, because pickup parts account for 27% of the specialty-

equipment market, it is important to note the top 10 list of U.S. auto sales in June 2023 and

their year-over-year growth from June 2022:

Introduction

1. Featured Sector News……………..……………….…….... 6

2. Additional Automotive Aftermarket M&A Highlights....….. 7

3. Demand Unlikely to Be Affected by Interest Rates or

Credit Availability.………………………………………..….. 8

4. 2020–2022 Demand Choppiness Has Seemingly

Abated…......................................................................…. 9

5. New Vehicle Production May Spur Upgrade Demand..... 10

6. Equity Market Index Performance.……………………….. 11

7. Public Company Valuations.………….............................. 13

8. Public Comparables.…………...…………………………… 14

9. Disclaimer……………………………………………………. 16

Table of Contents

AUTOMOTIVE AFTERMARKET UPDATE

Source: MarkLines.

1. Ford F-Series up 25%

2. Chevrolet Silverado up 8%

3. Ram Pickups up 3%

4. Toyota RAV4 up 20%

5. Tesla Model Y up 82%

6. Honda CR-V up 36%

7. Nissan Rogue up 125%

8. Toyota Camry up 18%

9. GMC Sierra up 28%

10. Jeep Grand Cherokee up 53%

The global auto aftermarket team at Houlihan Lokey would love to share further thoughts

about the enthusiast subsector and the broader aftermarket landscape. Please do not

hesitate to contact us with any questions you may have.

FEATURED RECENT TRANSACTION

Client Profile

Cardone Industries, Inc., is an industry

-leading automotive parts remanufacturer founded in 1970 and

based in Philadelphia. Cardone has a 50+ year track record of remanufacturing high

-quality, reliable,

and affordable parts. Remanufacturing is the process by which previously sold, worn out, or non

functional automotive products (cores) are returned to a “like

-new” or “better-than-new” condition. The

company promotes a circular economy by remanufacturing, providing sustainable products with the

quality and reliability of an original equipment manufacturer to more than 300 blue

-chip customers

across the U.S. The company has over 40,000 unique SKUs and more than 80 product lines with a

focus on steering, calipers, brakes, and electronics. The company’s seven facilities and more than

2,800 employees throughout the U.S. and Mexico serve a variety of North American retailers.

Cardone was previously acquired by Brookfield Asset Management in April 2019.

Our Role

Houlihan Lokey served as the exclusive financial advisor to Cardone, and King & Spalding LLP served

as legal counsel. We assisted in the negotiation and placement of third lien bridge financing from

Brookfield, leading to the initiation, structuring, and negotiation of the sale to a global automotive parts

company.

Transaction Snapshot

On June 30, 2023, Cardone Industries, Inc., a portfolio company of Brookfield Asset Management Ltd.,

was acquired by a global automotive parts company. This transaction builds on Houlihan Lokey’s

successes and expertise in the automotive aftermarket.

Cardone Industries, Inc.

Sources: Company website, press releases.

Date Company Subsectors Description Article Link

7/5/2023

Aftermarket Parts

PHINIA Inc. achieved independence by separating from BorgWarner, and it began

trading on the NYSE as “PHIN.” The company focused on delivering innovative systems

for sustainability and aiming for carbon neutrality in vehicles and industries.

6/26/2023

Aftermarket Retail

and Distribution

William C. Rhodes III will step down as President and CEO of AutoZone, transitioning to

Executive Chairman in January 2024. Philip B. Daniele III will take over as CEO and join

the board of directors.

5/30/2023

Aftermarket Parts

Atmus

Filtration Technologies, a global filtration industry leader, has successfully closed

its initial public offering of 16,243,070 shares of common stock. The shares were priced

at $19.50 per share, and trading began on the NYSE under the symbol “ATMU” on May

26, 2023. Cummins Inc. remains a major shareholder, owning approximately 80.5% of

outstanding shares.

5/25/2023

Aftermarket Parts

Fox Factory Holding Corp. appoints Dennis

Schemm

as Chief Financial Officer, effective

June 12, 2023. His extensive finance experience will support the company’s growth

journey. Mr.

Schemm succeeds Interim CFO, Maggie Torres, who will retire.

5/23/2023

Aftermarket Retail

and Distribution

Kevin Herron, President of U.S. Automotive Group at Genuine Parts Company (GPC),

will retire after 34 years. Randy Breaux will be promoted to Group President, GPC North

America on July 1, 2023. Herron will aid in a smooth transition until his retirement.

5/17/2023

Aftermarket Parts

Holley Inc. appoints Matthew Stevenson as President and CEO, effective June 6, 2023.

He brings extensive experience in leading organizational turnarounds and growth. Mr.

Stevenson replaces Interim President and CEO, Michelle

Gloeckler

, who remains on the

board of directors.

5/8/2023

Services

Gary W.

Ferrera has been appointed Executive VP and CFO of Driven Brands, effective

May 10, 2023. His extensive financial expertise and M&A experience will drive growth

and shareholder value. Mr.

Ferrera succeeds Tiffany Mason.

4/17/2023

Services

Mister Car Wash appointed Mary Porter as Chief People Officer to reinforce its people

centric approach. With extensive retail and HR experience, she will enhance the

company’s employee

-first culture, driving talent acquisition, engagement, and

organizational development. Ms. Porter’s belief in employee well

-being aligns with the

company’s values.

While there have been selected leadership changes announced, the public listings of PHINIA and Atmus Filtration Technologies

are potentially the most consequential changes to the aftermarket corporate landscape.

FEATURED SECTOR NEWS

$35.7 $13.0 $12.9 $27.7 $21.0 $7.2

326

311

301

437

361

192

2018 2019 2020 2021 2022 YTD 2023

Disclosed Value ($B) Deals

 Automotive aftermarket M&A activity remains consistent

with broader trends; while the number of transactions is

on pace to be relatively steady in 2023, it seems to

comprise a relatively larger number of smaller add-on

acquisitions.

 Recent acquisitions have tended to be more heavily

ewed to nondiscretionary replacement parts and

services than enthusiast upgrade parts businesses.

 Interest rates seem to have favored strategic buyers over

pri

vate equity parties in recent M&A activity.

Transaction Value and Deal Volume

Additional Notable Transactions

Key Takeaways

$ in Billions

Source: S&P Capital IQ.

Note: Data as of June 30, 2023.

ADDITIONAL AUTOMOTIVE AFTERMARKET M&A HIGHLIGHTS

Date Acquirer Target

6/26/2023

6/13/2023

6/8/2023

Horsepower Automotive

Group, LLC

6/6/2023

5/31/2023

5/23/2023

5/18/2023

5/9/2023

Assets of Zender’s Truck

& Equipment

5/9/2023

5/8/2023

Dealership Services

Business in United States

5/1/2023

4/18/2023

Bagnell Auto Supply, Inc.

4/18/2023

4/5/2023

(5%) 0% 5% 10% 15% 20%

R² = 0.17

(4%)

(2%)

10%

12%

14%

16%

0% 5% 10% 15%

Personal Spending

R² = 0.68

• Because parts or services to upgrade the performance or appearance of a vehicle are discretionary, it is critical for investors and

executives to understand demand drivers.

• 2021 was a very strong year for enthusiast parts and services with relative softness in 2022.

• Given the potentially distorting effects of COVID-19

and subsequent interest rate increases, it is important to utilize long-term data to

understand key reasons for recent historical trends.

• Data indicates that 2021’s strength was likely a pandemic-r

elated outlier, and 2022 was a return-to-normal affected by 2021 pull forward.

• For 2023 and 2024, interest rates and/or credit availability are unlikely to have as significant an impact on demand as wage grow

th.

DEMAND UNLIKELY TO BE AFFECTED BY INTEREST RATES OR

CREDIT AVAILABILITY

Historical demand indicates that personal spending, a driver of enthusiast upgrade parts and services, has a much stronger

correlation with income than consumer credit.

Total Wages and Government Transfers Total Consumer Credit

Relatively Strong Correlation Between

Spending and Wages

Relatively Weak Correlation Between

Spending and Credit

Sources: PitchBook, U.S. Department of Commerce Bureau of Economic Analysis.

Year-Over-Year Growth in Personal Income

• Because demand for enthusiast upgrade parts and services

seems to be driven significantly by wage growth, it is important

to understand historical implications.

• Annual growth trends for personal income show significant

distortions in the Q2 2020–Q3 2022 periods.

• Anecdotally, many auto aftermarket companies experienced

similar volatility in demand.

• Since the second half of 2022, personal income, and demand

for discretionary auto parts and services, have stabilized and

returned to long-term demand trends.

• Buyers and sellers of businesses in the sector may be more

comfortable understanding businesses and value in this more

stable demand environment, leading to increased M&A activity.

2020–2022 DEMAND CHOPPINESS HAS SEEMINGLY ABATED

Historical year-over-year growth by quarter was generally steady at approximately 5% before experiencing significant gyrations

from Q2 2020 through Q2 2022; growth has now returned to a pattern more consistent with long-term trends.

(5%)

10%

15%

20%

Q1 2018

Q2 2018

Q3 2018

Q4 2018

Q1 2019

Q2 2019

Q3 2019

Q4 2019

Q1 2020

Q2 2020

Q3 2020

Q4 2020

Q1 2021

Q2 2021

Q3 2021

Q4 2021

Q1 2022

Q2 2022

Q3 2022

Q4 2022

Q1 2023

Source: U.S. Department of Commerce Bureau of Economic Analysis.

Key Takeaways

• Consumers tend to upgrade vehicles shortly following new

ownership.

• Because new vehicle production has continued to face

mitations due to supply chain challenges, a key driver for

vehicle upgrade demand has been inhibited.

• Near-ter

m historical monthly low point occurred in January

2022, when more than 1 million vehicles were produced.

• June 2023 saw just under 1.4 million vehicles produced

foll

owing nearly sequential monthly improvements throughout

2023.

• Steady improvement in new vehicle production and sales will

kely be a leading indicator for aftermarket upgrade parts

demand.

NEW VEHICLE PRODUCTION MAY SPUR UPGRADE DEMAND

Most aftermarket upgrades to a vehicle come within approximately the first 18 months of ownership; constrained new vehicle

production due to supply chain issues, particularly driven by lack of microchip availability, has largely returned to growth.

12,500,000

13,000,000

13,500,000

14,000,000

14,500,000

15,000,000

15,500,000

LTM U.S. New Vehicle Production

Past 12 Months U.S. New Passenger Vehicle

Production

Source: MarkLines.

100

110

Apr-23 May-23 Jun-23

S&P 500 Houlihan Lokey Automotive Aftermarket

100

110

120

130

Jul-22 Aug-22 Sep-22 Nov-22 Dec-22 Feb-23 Mar-23 May-23 Jun-23

S&P 500 Houlihan Lokey Automotive Aftermarket

Houlihan

Lokey

Automotive

Aftermarket

18.5%

S&P

500

16.3%

 After outperforming broader

markets in Q4 2022 and Q1

2023, the aftermarket sector

has lagged recently.

 Recent sector declines in

public market price

performance are largely

attributable to Advance

Auto Parts, which declined

40% in May and April after

cutting dividends.

 Holley and Motorcar Parts

of America, Inc., enjoyed

significant stock price

increases on a percent

basis in recent periods.

LTM June 2023 Performance

April–June 2023 Performance

S&P

500

7.9%

Houlihan

Lokey

Automotive

Aftermarket

0.3%

(1)

Source: S&P Capital IQ.

Notes: Data as of June 30, 2023. All share prices are rebased to 100.

(1) The Houlihan Lokey Automotive Aftermarket Index consists of a diversified set of 21 companies across the automotive aftermarket

sector. See pages 14 and 15 for a complete list.

EQUITY MARKET INDEX PERFORMANCE

Recent strong performance in the enthusiast parts subsector may be a harbinger of a return to significant M&A activity.

LTM June 2023 Performance by Subsector

100

120

140

160

Jul-22 Sep-22 Dec-22 Mar-23 Jun-23

Enthusiast Parts Replacement Parts Aftermarket Retail and Distribution Services

YTD 2023 Performance Three-Year Performance (July 2020–June 2023)

27%

-8%

84%

-4%

106%

52%

Source: S&P Capital IQ.

Notes: Data as of June 30, 2023. All share prices are rebased to 100.

EQUITY MARKET INDEX PERFORMANCE (CONT.)

AUTOMOTIVE AFTERMARKET SUBSECTORS

Enthusiast Parts

35.8%

Services

32.0%

Aftermarket

Retail and

Distribution

18.7%

Replacement

Parts

(30.3%)

EV/2023E Revenue EV/2023E EBITDA Forward P/E

Enthusiast Parts

Replacement Parts

Aftermarket Retail

and Distribution

Services

15.0x

7.6x

12.1x

15.2x

3.2x

1.0x

1.3x

2.7x

21.9x

11.3x

17.6x

26.3x

PUBLIC COMPANY VALUATIONS (2023E)

Source: S&P Capital IQ.

Note: Data as of June 30, 2023.

PUBLIC COMPARABLES (LTM JUNE 2023)

AUTOMOTIVE AFTERMARKET

Source: S&P Capital IQ.

Note: Data as of June 30, 2023.

LTM TEV/

Revenue

USDm

EBITDA

USDm EBITDA Margin EPS Forward P/E LTM EBITDA LTM Revenue

Holley Inc. $479.2 $1,132.9 $624.9 7.0x $660.6 $89.1 13.5% $0.0 21.0x 12.7x 1.7x

Fox Factory Holding Corp. 4,590.3 4,916.1 219.6 0.7x 1,618.4 304.6 18.8% 4.4 20.1x 16.1x 3.0x

XPEL, Inc. 2,326.0 2,362.2 (1.3) N/M 356.3 77.8 21.8% 1.8 36.8x 30.4x 6.6x

ARB Corporation Ltd. 1,562.8 1,566.7 4.0 0.0x 461.4 109.7 23.8% 0.8 23.3x 14.3x 3.4x

Median $111.8 0.7x $561.0 $99.4 20.3% $1.3 22.1x 15.2x 3.2x

Mean $211.8 2.6x $774.2 $145.3 19.5% $1.7 25.3x 18.4x 3.7x

Dorman Products, Inc. $2,480.6 $3,251.3 $674.1 3.0x $1,798.9 $225.8 12.6% $2.9 14.1x 14.4x 1.8x

Standard Motor Products, Inc. 813.1 1,149.1 200.2 1.1x 1,370.7 183.2 13.4% 2.8 10.1x 6.3x 0.8x

Motorcar Parts of America, Inc. 150.9 419.1 201.4 3.7x 678.8 53.7 7.9% (0.3) 7.2x 7.8x 0.6x

PHINIA Inc. 1,480.5 2,443.5 442.0 0.7x 3,432.0 593.0 17.3% 5.0 N/A 4.1x 0.7x

Atmus Filtration Technologies Inc. 1,829.2 1,867.5 510.7 2.1x 1,618.6 240.4

14.9% 2.2 11.6x 7.8x 1.2x

Median $442.0 2.1x $1,618.6 $225.8 13.4% $2.8 10.9x 7.8x 0.8x

Mean $405.7 2.1x $1,779.8 $259.2 13.2% $2.5 10.8x 8.1x 1.0x

Advance Auto Parts, Inc. $4,178.2 $8,588.0 $1,674.1 1.0x $11,198.1 $1,665.6 14.9% $6.7 11.0x 5.2x 0.8x

AutoZone, Inc. 45,269.4 55,354.6 7,023.0 1.6x 17,114.9 4,266.4 24.9% 127.3 17.9x 13.0x 3.2x

O’Reilly Automotive, Inc. 58,157.7 65,202.1 4,815.8 1.2x 15,220.0 3,931.8 25.8% 36.0 24.9x 16.6x 4.3x

Genuine Parts Company 23,779.5 27,370.5 2,873.7 1.2x 22,879.0 2,421.4 10.6% 8.5 18.5x 11.3x 1.2x

LKQ Corp. 15,575.0 19,300.0 2,096.0 1.0x 12,902.0 2,099.0 16.3% 3.7 14.0x 9.2x 1.5x

CarParts.com, Inc. 239.4 234.5 (29.9) N/M 671.0 21.9 3.3% (0.0) N/M 10.7x 0.3x

Median $2,484.8 1.2x $14,061.0 $2,260.2 15.6% $7.6 17.9x 11.0x 1.3x

Mean $3,075.5 1.2x $13,330.9 $2,401.0 16.0% $30.4 17.3x 11.0x 1.9x

Mister Car Wash, Inc. $2,977.2 $4,618.8 $775.6 2.2x $894.8 $354.3 39.6% $0.3 28.4x 13.0x 5.2x

Boyd Group Services Inc. 4,098.4 5,129.1 1,004.5 3.2x

2,730.9 315.3 11.5% 3.4 40.3x 16.3x 1.9x

Monro, Inc. 1,276.5 1,940.5 371.6 1.9x 1,302.8 191.3 14.7% 1.1 22.8x 10.1x 1.5x

Driven Brands Holdings Inc. 4,534.2 8,396.1 2,658.9 4.2x 2,127.3 629.7 29.6% 0.2 20.8x 13.3x 3.9x

Valvoline Inc. 6,219.5 5,972.8 640.7 2.0x 1,388.9 316.0 22.7% 0.8 27.1x 18.9x 4.3x

D’Ieteren Group S.A. 9,387.2 10,630.6 1,203.6 3.6x 5,038.6 331.8 6.6% 6.6 13.6x 32.0x 2.1x

Median $890.1 2.7x $1,758.1 $323.9 18.7% $0.9 24.9x 14.8x 3.0x

Mean $1,109.2 2.9x $2,247.2 $356.4 20.8% $2.1 25.5x 17.3x 3.1x

Overall Median $640.7 1.9x $1,618.6 $315.3 14.9% $2.8 20.1x 13.0x 1.8x

Overall Mean $1,332.5 2.2x $5,022.1 $877.2 17.4% $10.2 20.2x 13.5x 2.4x

Services

Replacement

Parts

Net Debt/LTM

EBITDA

Market Cap

USDm

Net Debt

USDm

Enthusiast

Parts

Aftermarket

Retail and

Distribution

Source: S&P Capital IQ.

Note: Data as of June 30, 2023.

PUBLIC COMPARABLES (2023E)

AUTOMOTIVE AFTERMARKET

EV/Revenue EV/EBITDA P/E EBITDA Margin

2022 2023E 2022 2023E 2022 2023E Revenue EBITDA 2022 2023E 2022 2023E

Holley Inc. 6.3x 1.6x 1.7x 11.5x 8.9x 28.6x 28.1x (1.9%) (8.6%) 14.3% 19.1% 13.3x 14.1x

Fox Factory Holding Corp. 0.7x 3.1x 2.9x 16.0x 15.2x 22.4x 21.0x 13.3% 14.1% 19.2% 19.4% 19.4x 19.6x

XPEL, Inc. N/M 7.3x 6.0x 35.3x 28.2x N/M 37.3x 22.8% 32.2% 20.7% 21.5% 41.5x 36.5x

ARB Corporation Ltd. 0.0x 3.4x 3.5x 14.3x 14.7x 22.8x 24.0x (5.9%) (15.0%) 23.8% 23.6% 21.0x 24.2x

Median 0.7x 3.2x 3.2x 15.1x 15.0x 22.8x 26.1x 5.7% 2.7% 19.9% 20.4% 20.2x 21.9x

Mean 2.4x 3.8x 3.5x 19.3x 16.7x 24.6x 27.6x 7.1% 5.7% 19.5% 20.9% 23.8x 23.6x

Dorman Products, Inc. 2.8x 1.9x 1.7x 13.6x 10.5x 20.5x 15.3x 21.0% 18.8% 13.8% 15.7% 15.6x 13.3x

Standard Motor Products, Inc. 1.1x 0.8x 0.8x 6.5x 8.7x 11.4x 10.6x 3.5% (13.7%) 12.9% 9.5% 10.3x 11.3x

Motorcar Parts of America, Inc. 4.4x 0.6x 0.6x 9.2x 4.9x

N/M 7.2x 5.1% 10.6% 7.0% 11.9% 2.9x 7.0x

PHINIA Inc. 0.8x 0.7x N/A 4.2x N/A N/A N/A N/A N/A 17.5% N/M N/A N/A

Atmus Filtration Technologies Inc. 2.4x 1.2x 1.2x 8.7x 6.5x N/A 11.6x 5.7% 15.3% 13.7% 18.0% N/A 11.3x

Median 2.4x 0.8x 1.0x 8.7x 7.6x 15.9x 11.1x 5.4% 13.0% 13.7% 13.8% 10.3x 11.3x

Mean 2.3x 1.1x 1.1x 8.5x 7.6x 15.9x 11.2x 8.8% 7.8% 13.0% 13.8% 9.6x 10.7x

Advance Auto Parts, Inc. 0.9x 0.8x 0.8x 4.8x 10.1x 8.5x 11.8x 1.0% (32.2%) 15.9% 7.6% 5.4x 11.1x

AutoZone, Inc. 1.7x 3.3x 3.1x 13.5x 13.6x 20.9x 18.5x 7.8% 1.8% 24.8% 23.1% 19.0x 18.0x

O’Reilly Automotive, Inc. 1.3x 4.5x 4.2x 17.2x 18.3x 28.6x 25.6x 8.4% (1.9%) 26.3% 22.8% 26.5x 23.9x

Genuine Parts Company 1.2x 1.2x 1.2x 11.5x 12.7x 20.4x 18.7x 11.3% 6.5% 10.8% 9.2% 20.1x 17.6x

LKQ Corp. 1.0x 1.5x 1.4x 9.2x 10.7x 14.1x 14.3x 3.0% (9.5%) 16.4% 13.0% 14.6x

14.0x

Car

Parts.com, Inc. N/M 0.4x 0.3x 10.6x 11.5x N/M N/M 8.5% 71.5% 3.4% 3.0% N/A N/M

Median 1.2x 1.4x 1.3x 11.0x 12.1x 20.4x 18.5x 8.1% (0.0%) 16.1% 11.1% 19.0x 17.6x

Mean 1.2x 2.0x 1.8x 11.1x 12.8x 18.5x 17.8x 6.7% 6.0% 16.2% 13.1% 17.1x 16.9x

Mister Car Wash, Inc. 2.2x 5.3x 5.0x 13.1x 16.6x 28.4x 29.9x 10.6% 54.0% 40.3% 30.0% 25.3x 28.5x

Boyd Group Services Inc. 3.8x 2.1x 1.7x 19.7x 13.9x N/M 43.4x 25.5% 33.0% 10.7% 12.5% 49.1x 35.3x

Monro, Inc. 1.8x 1.4x 1.5x 9.3x 11.4x 28.5x 28.5x (0.9%) (12.6%) 15.5% 13.0% 23.5x 25.7x

Driven Brands Holdings Inc. 4.3x 4.1x 3.6x 13.5x 15.6x N/M 22.1x 25.6% 7.1% 30.6% 23.2% 21.1x 26.8x

Valvoline Inc. 2.2x 4.7x 4.0x 20.9x 14.9x N/M 29.8x 49.1% 1.8% 22.3% 27.0% 34.3x 23.5x

D’Ieteren Group S.A. 3.6x 2.1x 0.9x 32.0x 17.3x 26.8x 13.6x 76.8% 102.1% 6.6% 5.1% 14.1x 13.3x

Median 2.9x 3.1x 2.7x 16.6x

15.2x 28.4x 29.

1x 25.6% 20.0% 18.9% 18.1% 24.4x 26.3x

Mean 3.0x 3.3x 2.8x 18.1x 14.9x 27.9x 27.9x 31.1% 30.9% 21.0% 18.5% 27.9x 25.5x

Overall Median 1.8x 1.9x 1.7x 13.1x 13.2x 22.4x 21.0x 8.4% 6.8% 15.9% 16.8% 19.7x 18.0x

Overall Mean 2.2x 2.5x 2.3x 14.0x 13.2x 21.7x 21.6x 14.5% 13.8% 17.4% 16.4% 20.9x 19.7x

Net Debt/2022

EBITDA

2021–23E CAGR Forward P/E

Services

Replacement

Parts

Aftermarket

Retail and

Distribution

Enthusiast

Parts

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