GCG’s Q2 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 Q2 2022, while a few segments of the Industrial sector outperformed the general market, most experienced a continued decline in growth amidst record levels of inflation, rising interest rates, and sustained labor and supply chain challenges.
- The volume of M&A activity in the Industrials sector continued to decline in Q2 2022 with 261 deals closed, compared to 311 during the previous quarter. However, the average deal value (based on reported transaction value) increased further from the prior quarter level.
- The General Industrial Manufacturing category led M&A activity, accounting for 31.2% of total transaction volume. Polymers, Chemicals & Plastics Manufacturing represented the second most active segment, accounting for 19.0% of transaction volume.
- Based on a representative set of publicly traded companies in the Industrials sector, public companies traded at an average multiple of 12.3x EBITDA and 1.8x Revenue.
Click here for the full update.