• Wants to boost B2B segment, toolset
• Ready for IPO in terms of performance
• Shifting from goods seller to service model

AUTODOC, a German online retailer of automotive parts, could make opportunistic acquisitions to strengthen its offering, CEO Dmitry Zadorozhny told Mergermarket.

While continuing to focus on organic growth, AUTODOC could acquire targets that would strengthen its offering in the B2B segment or add to its toolset, Zadorozhny said.

The size of potential targets would depend on the specific opportunity but could involve a deal value of anywhere upwards of several million euros, CFO Lennart Schmidt said in a joint interview. It is more about what added value any target would bring rather than its size, he added.

AUTODOC is not actively looking for acquisitions and has not proceeded with any potential acquisition targets to date, Zadorozhny said.

The company had 2023 net revenues of more than EUR 1.3bn and an adjusted EBITDA margin above 10%, according to a company presentation.

The main growth potential in the short term is from further strengthening its position in existing markets rather than entering new markets, Zadorozhny said.

The company is also exploring opportunities to expand in new markets, but this is not a priority, Zadorozhny said. The US is an interesting market but not that easy to enter and is not on its immediate agenda, Schmidt added.

There is also strong potential to grow in the B2B segment, which currently accounts for less than 1% of revenues, Zadorozhny said, adding that will be much higher this year.

AUTODOC announced on 24 April that it had secured a minority stake investment from Apollo funds, along with leading institutional investors, at an equity valuation of EUR 2.3bn.

The size of the investment was not disclosed but the investment was in the range of “a couple of hundred million euros”, Schmidt said.

IPO potential

The company is working towards preparing itself internally for an IPO but there is no concrete timeframe for this, Schmidt said. There is no active process in place and no bankers have been appointed, he said, adding that it is too early to further specify when an IPO could happen or on which stock exchange.

The entrance of Apollo as an investor was an important milestone on this roadmap and AUTODOC will now assess where it stands, he added.

The company was already planning for an IPO in 2021, but narrowly missed the window before the markets turned volatile, according to a press report.

In terms of performance, not much needs to happen ahead of an IPO and for investors to find the company an attractive proposition, Schmidt said.

The company is debt free, has strong cash flow, has been growing at an average growth rate of 26% annually for the past five years and has an adjusted EBITDA margin of more than 10%, Schmidt noted. Very few companies can boast reaching such performance indicators without external investment, he added.

The company considers an IPO an option as it would increase the platform’s brand awareness and open up financing opportunities, Schmidt said. While it does not need to raise external financing at this stage, that could change in the future, he said.

AUTODOC wants to wait until the capital markets are truly ready before pursuing a listing so that it can benefit from flourishing markets, Zadorozhny said, noting that market conditions are improving.

Shifting business model

AUTODOC wants to shift from a pure goods selling model to a service model, Zadorozhny said.

The company started AUTODOC PRO, its first specific offer for B2B clients, in November 2022, the CEO said. Launched in France, it will soon expand to Benelux and Germany and plans to roll out to further countries, he said.

Until recently, it focused on B2C clients that can replace parts themselves, the CEO said. It wants to also serve clients seeking to have the parts installed at a garage by helping them to book an appointment at the nearest garage, he said. AUTODOC wants to tackle the high markup charged on parts ordered at garages, he added.

Private brands account for almost one fifth of revenues and the company plans to expand its range, Zadorozhny said.

AUTODOC is already the largest online player in its segment and while it is taking some market share from other players, the digitalisation of the independent automotive aftermarket is the largest growth driver, Schmidt said.

Online sales account for only 10% of the independent automotive aftermarket in Europe according to various market studies so there is plenty of growth potential, he said.

Founded in 2008, AUTODOC operates in 27 European countries, employs around 5000 people and has more than 7.4m active customers, according to a company presentation.