GCG’s Q1 2022 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 Q1 2022, while a few particular segments of the Industrial sector outperformed the general market, most experienced a slowdown in growth amidst increasing concerns around inflation, rising interest rates, and ongoing labor and supply chain challenges.
- The volume of M&A activity in the Industrials sector declined in Q1 2022 with 295 deals closed, compared to a 12-month peak of 375 during the previous quarter that reflected the historic end of the year push to close transactions ahead of uncertainty in potential tax policy changes. Average deal value (based on reported transaction value) increased slightly from the prior quarter level.
- The General Industrial Manufacturing category led M&A activity, accounting for 31.5% of total transaction volume. Polymers, Chemicals & Plastics Manufacturing represented the second most active segment, accounting for 18.6% of transaction volume.
- Based on a representative set of publicly-traded companies in the Industrials sector, public companies traded at an average multiple of 12.7x EBITDA and 2.2x Revenue.
Click here for the full update.