After emerging from an unprecedented period of restructuring, the U.S. automotive industry continues to gain strength with rising revenues, new product development, and significantly healthier balance sheets. Many companies will likely pursue M&A activity as a vital component of their growth strategies in the year ahead. Deal activity will likely help automotive companies to expand into new geographic areas and develop new products and technologies. Despite the opportunities, buyers should focus on several areas of due diligence, including an understanding of the evolving regulatory environment, growth and profitability initiatives, and valuations that may be affected by pricing pressures and the volatile costs of raw materials.