The conditions are right for an acquisition frenzy. So why aren’t more deals getting done?

A whole range of factors are favourable for a surge in acquisitions, but do the vast sums being suggested for companies mean that suppliers and private-equity firms are in danger of missing opportunities?

A convergence of factors in recent months has given the impression that the automoitve supply industry the verge of pushing the to a more heated consolidation phase than had even been anticipated for 2011. Many of those factors are the result of adjustments in the industry's basic business model as carmakers pull out of recession. In addition to this, private equity firms are sitting on billions of dollars of capital to invest and have been hunting for automotive opportunities as financial markets improve.