The Market Acquisition: Key Details, Impact, and What Comes Next

Bonhams' acquisition of The Market marks a significant development in the auction industry. By integrating The Market's digital platform for classic and collectible vehicles, Bonhams enhances its online presence and diversifies its auction services. This strategic move positions Bonhams to better serve a global audience, leveraging The Market's technological expertise and proven success in online auctions.

What Is The Market?

Founded in 2016, The Market specializes in online auctions for classic and collectible cars. Its core services include live, sealed, and no-reserve auctions, offering a diverse range of vehicles from various locations. Unique selling points include its global reach, variety of auction formats, and special listings featuring rare and historically significant cars. Additionally, The Market engages users through SMS notifications and newsletters, keeping them informed about auction activities and new listings.

Who Acquired The Market?

Bonhams is a leading auction house specializing in the sale of fine art, antiques, jewelry, motorcars, and other valuable collectibles. It plays a significant role in the auction industry by organizing and conducting live and online auctions, providing valuation services, and offering a platform for buying and selling high-value items. Known for its high-profile auctions and exclusive collections, Bonhams holds a strong market presence and influence, with a global reach and locations in major cities worldwide.

When Was The Market Acquired?

Bonhams acquired The Market on April 20, 2021. This acquisition came at a time when the auction industry was increasingly shifting towards digital platforms, a trend accelerated by the COVID-19 pandemic. The Market's innovative online auction model and its success in the UK and Europe made it an attractive target for Bonhams, which sought to enhance its digital presence and diversify its auction services. This strategic move aligns with broader industry trends favoring digital transformation and global reach.

Why Was The Market Acquired?

• Market Expansion: The acquisition of The Market allows Bonhams to expand its reach into the high-growth digital marketplace for classic and collectible cars. This move enables Bonhams to offer a broader range of vehicles at various price points to a global audience, thereby enhancing its market presence.
• Technology Integration: By integrating The Market's innovative digital auction platform, Bonhams significantly enhances its digital capabilities. The Market's focus on transparency and modern technology, including features like automatic bidding and transparent auction results, complements Bonhams' traditional auction services and broadens its digital reach.
• Competitive Advantage: The acquisition strengthens Bonhams' competitive position by combining its prestigious auction house reputation with The Market's successful digital business model. This synergy allows Bonhams to offer a comprehensive range of auction services, from traditional high-end car auctions to modern, technology-driven online auctions, thereby appealing to a broader audience and enhancing its market position.

Acquisition Terms

• Acquisition Price: The financial terms of the acquisition were not publicly disclosed.
• Payment Method: The acquisition was funded by a further investment from Epiris Fund II.
• Key Conditions or Agreements:
  • The Market will become a subsidiary of Bonhams.
  • The Market's current operations and ethos will be maintained.
  • The acquisition will allow The Market to expand into new territories, starting with Europe.
  • The Market's team, led by Tim Joslyn, will join Bonhams.
  • The acquisition aims to further advance the digital transformation of Bonhams.

Impact on The Market

The acquisition of The Market by Bonhams has led to several operational and managerial changes. The Market now operates as a subsidiary of Bonhams, maintaining its current operations and ethos while benefiting from Bonhams' resources and heritage. Caroline Cassini has been appointed as the General Manager for the US operations, indicating a strategic expansion into new territories. This integration aims to enhance The Market's digital auction platform, leveraging Bonhams' global reach and reputation to offer a more comprehensive range of services.

In terms of product offerings and services, The Market continues to focus on online auctions for classic and collectible cars, now powered by Bonhams. This partnership allows for expanded reach and improved service quality, including no buyers' fees and a flat 5% sellers' commission. Employee reactions have been positive, with key figures expressing enthusiasm about the future. Customers are expected to benefit from enhanced credibility and expanded offerings, thanks to the backing of a major player like Bonhams. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly and efficiently.