Skip to content
  • About Us
    • Careers
  • Services
    • Buy Side Advisory
    • Capital Raising
    • Sell Side Advisory
    • Transaction Planning & Readiness Review
  • Industry Expertise
    • Business Services & Technology
    • Consumer, Food & Retail
    • Healthcare
    • Industrials
    • Plastics & Packaging
  • Transactions
  • Team
  • News & Insights
    • Events
    • Industry Updates
    • News
    • Perspectives
Menu
  • About Us
    • Careers
  • Services
    • Buy Side Advisory
    • Capital Raising
    • Sell Side Advisory
    • Transaction Planning & Readiness Review
  • Industry Expertise
    • Business Services & Technology
    • Consumer, Food & Retail
    • Healthcare
    • Industrials
    • Plastics & Packaging
  • Transactions
  • Team
  • News & Insights
    • Events
    • Industry Updates
    • News
    • Perspectives
Contact

Industry Updates

  • Back to News & Insights

Construction M&A Pulse – H2 2019

  • February 20, 2020
  • Industry Updates
  • Building Products & Construction, Industrials

Overall M&A deal volume in the construction industry 1 declined roughly 29 in 2019 compared to 2018 Although M&A activity has been slowing in the industry, competition remains robust for quality construction materials and building products distribution businesses Within the contractor space, restoration, roofing, fire protection, paving as a service and residential plumbing companies have been particularly attractive General Contractors, on the other hand, have traded infrequently due to challenged margins, the perception of key man risk, and higher bonding requirements

Due to the privately held nature of the construction industry, transactions typically do not disclose financial terms As a result, all available private equity transaction multiples, across industries, are used here as a proxy for demand for assets of various sizes, over time These multiples are an average and are not indicative of a what a business would potentially fetch in the market In fact, the market values different sectors of the broader construction industry quite differently The data does support the argument that the shift in volume towards smaller deals has reduced the premium larger companies receive compared to smaller companies For example, the premium paid for companies valued between 100 mm 250 mm over those valued between 10 mm 25 mm fell from 2 9 x EBITDA in 2018 to 2 1 x EBITDA in 2019

 

Download Preview

Stay Informed

Subscribe to our newsletter for the latest industry updates

Subscribe

Recent Publications

Human Capital Management M&A Pulse – Q4 2022
Plastics M&A Update – November 2022
Packaging M&A Update – November 2022
Industrial Distributor M&A Pulse – Q3 2022
Food & Beverage M&A Pulse – Q3 2022
Contact

Follow Us On

Cfi Logo White 94x94 On About

Home

  • About
  • Team
  • Careers

Services

  • Buy Side Advisory
  • Capital Raising
  • Sell Side Advisory
  • Transaction Planning & Readiness Review

Industry Expertise

  • Business Services & Technology
  • Consumer, Food & Retail
  • Healthcare
  • Industrials
  • Plastics & Packaging

News & Insights

  • Transactions
  • News
  • Industry Updates
  • Perspectives
  • Events

PMCF is a trade name for PMCF Advisors, LLC and P&M Corporate Finance, LLC. The term “PMCF” refers to one or more of these legally separate and independent advisory practices. P&M Corporate Finance, LLC provides capital raising and private placement services that require registration as a broker-dealer.

©2022 PMCF

  • Member SIPC​
  • Member FINRA
  • FINRA Broker Check
  • Business Continuity Plan​
  • Disclaimer​
  • Privacy Policy​