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

Industrial Distributor M&A Pulse – Q2 2018

  • October 23, 2018
  • Industry Updates
  • Industrial Distribution, Industrials
Featured Pulse Industrial Distributor

The first half of 2018 saw reasonable industrial distribution M&A activity, though activity has slowed relative to recent high volume periods (perhaps in response to developments around trade policy). Notwithstanding, deal volume/value, public equity performance, and economic indicators point to continued traction in the industrial distribution market. While year-to-date (“YTD”) industrial distribution deal volume decreased 8.5% over YTD Q2 2017, public valuation multiples continued to rise, with the median industrial distribution EV/EBITDA multiple increasing to 13.2x in Q2 2018 from 11.4x in Q2 2017, and the mean multiple increasing from 11.9x to 13.2x.

Macroeconomic indicators in Q2 2018 continue to point towards growth. The Institute for Supply Management (“ISM”) New Orders Index registered above 50 (the threshold for economic expansion) for the 22nd consecutive month in June 2018, finishing at 63.5 vis-à-vis 61.9 in March 2018. The ISM Purchasing Managers’ Index closed at 60.2 in June 2018, up slightly from 59.3 in March 2018. The Chicago Fed Midwest Economy Index, which measures non-farm economic indicators, saw a small decrease from 0.5 in March 2018 to 0.4 in June 2018, both values still indicating expansion. The Consumer Price Index, a measure of inflation, saw an increase, up to 250.9 in June 2018 (0.56% growth over Q1 2018).

A number of additional data points indicate a healthy economy for industrial distributors. The ISM’s Production Index finished June 2018 at 62.3, up from 61.0 in March 2018 (over 50 indicates expansion). While 2018 equity markets have experienced some volatility in the first quarter, they remain flat year-to-date but elevated over June 2017 levels (the S&P 500 closed at 2,718 on June 29, compared to 2,423 on June 30, 2017).

Read Industrial Distributor M&A Pulse Q2 2018 Full Report

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​