Annual Industrials M&A Report – Middle Market M&A Activity & 2023 Outlook

Pandemic Tailwinds and End Market Growth Fuel Elevated Industrials Deal Activity

Consistent with the general economic outlook and overall public market performance, valuations and EBITDA multiples in the Industrial sectors for 2022 were a tale of two halves, according to Capstone Partners’ recent Annual Industrials M&A Report. Valuations started the year at or near peak levels experienced in the tail end of 2021, however, multiples and average transaction values began to demonstrate weakness in Q1 of 2022. By the late summer, valuations were meaningfully depressed compared to the year before as interest rates began to rise and fears of a recession loomed. By the end of fall, valuations began to rebound as uncertainty around the economic environment subsided.

Capstone Partners’ Annual Industrials M&A Report, available for download below, shares insights into merger and acquisition (M&A) activity, public market valuations, the macroeconomic climate, and an outlook for 2023 industry activity. With extensive knowledge and transaction experience, Capstone’s Industrials Investment Banking Group provides unique commentary on seven key sectors: Chemicals & Plastics, Engineered Products, Environmental, Health & Safety, HVACR, Packaging, Precision Manufacturing, and Waste & Recycling.

Also included in this report:

• Which sectors outperformed the broader Industrials industry and are poised to capture the most buyer interest in 2023.
• How the average Industrials EBITDA purchase multiple has fluctuated over the past several years.
• What trends are driving M&A activity across the Industrials industry, as well as specific trends impacting each of the seven highlighted subsectors.

Download Our Annual Industrials M&A Report

Capstone remains a highly active advisor to Industrials companies, with recent clients including Paterson Pacific Parchment Company on its sale to Hoffmaster Group, Inc. (Packaging sector, March 2023) and Garlock Pipeline Technologies (GPT) on its sale to Branford Castle Fund II (Engineered Products, February 2023).   If you own or invest in a middle market Industrials company and you would like to know more about how you can benefit from a relationship with our Industrials Investment Banking Team, reach out to us today.