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May 2017

Q1 2017 Industrials M&A Update

Greenwich Capital Group LLC’s Q1 2017 Industrials M&A Update offers insight into recent trends in the Industrials sector as well as the state of the overall middle-market M&A environment. The report provides a data-driven analysis on transaction volumes and values, valuation multiples and private equity deal flow.

Key findings include the following:

Middle-Market M&A

  • Q1 2017 transaction volume totaled 6,487 deals that resulted in $35.9 billion of value, representing a 2.2% quarterly increase in volume and 20.4% decrease in value from Q4 2016.
  • Valuation multiples reached an average of 10.3x EBITDA in Q1, a significant increase from 9.4x in the prior quarter. Multiples are anticipated to remain at near recent highs as private equity funds and corporations continue to compete for acquisitions.

Industrials M&A

  • Q1 was a strong quarter for Industrials M&A, led by strategic buyers armed with strong balance sheets and record high levels of cash available for investments.
  • Industrials valuation multiples averaged 9.7x EBITDA in the first quarter. Despite a slight decrease from the first quarter of 2016, multiples were well above the FY 2016 average of 8.3x and the five-year average of 8.5x.

View the complete Q1 2017 Industrials M&A Update for a more in-depth analysis of key market trends and observations.