GCG’s Q4 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 Q4 2021, public equities across many of the Industrials sectors performed in line with the broader U.S. equity market and were near all-time highs.
- The volume of M&A activity in the Industrials sector increased significantly in Q4 2021 with 366 deals closed, compared to 300 during the previous quarter, continuing the historic pace of M&A activity during 2021. Average deal value (based on reported transaction value) declined which suggests a strong increase in activity throughout the middle market area.
- The General Industrial Manufacturing category led M&A activity, accounting for 30.9% of total transaction volume. Polymers, Chemicals & Plastics Manufacturing deal activity remained strong with 22.4% of transaction volume.
- Based on a representative set of publicly traded companies in the Industrials sector, public companies traded at an average multiple of 14.5x EBITDA and 2.4x revenue.
Click here for the full update.