GCG’s Q3 2021 Industrials Industry Update provides an overview of the latest trends in the sector, including recent performance, valuation multiples, and the state of the middle-market M&A environment.
Key findings include the following:
- In Q3 2021, public equities across most of the Industrials sector slightly underperformed the broader U.S. equity market, with the exception of a few segments that had stronger performances.
- The volume of M&A activity in the Industrials sector trended up slightly in Q3 2021 with 299 deals closed, versus 291 during the previous quarter, continuing the record year for M&A activity. Average deal value (based on reported transaction value) increased meaningfully, signaling that the market is continuing to pursue larger deals as the M&A environment remains strong.
- The General Industrial Manufacturing category led M&A activity, accounting for 33.1% of total transaction volume. Polymers, Chemicals & Plastics Manufacturing deal activity remained strong with 20.1% of transaction volume.
- Based on a representative set of publicly traded companies in the Industrials sector, public companies traded at an average multiple of 13.4x EBITDA and 2.1x revenue.
Click here for the full update.