• About Us
    • Careers
  • M&A 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
  • M&A 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 – Q3 2016

  • December 30, 2016
  • Industry Updates
  • Industrial Distribution, Industrials
Share on facebook
Share on twitter
Share on linkedin
Featured Pulse Industrial Distributor

The third quarter of 2016 was a relative bright spot for the industrial distribution M&A market amidst an assortment of challenging economic indicators. Deal volume, which had increased more than 13.0% on a compounded basis from 2010 to 2015, decreased 12.0% for year-to-date September as compared to the same period for the prior year. This indicates an uptick in deal activity since June, when industrial distribution deals were down 15.0% year-to-date. The number of deals occurring in the broader M&A market continues to trail 2015 figures, although aggregate deal value remained relatively firm due to larger companies changing hands and an increased reliance on M&A activity to drive growth in a tepid organic growth environment.

The macroeconomic environment has been mixed since June, with the Industrial Supply Association’s Distributor Index, for example, decreasing 9.2% since August, but settling at 57.1, far above its trailing twelve-month low of 44.9 in July.* The Federal Reserve’s Purchasing Manager Index also fell off from a peak of 53.2 in June, but remains at 49.4, just barely below the 50.0 threshold indicating an expansion. The Institute for Supply Management’s Production Index is also down year to date, but improved in September to finish at 49.5, also just below the expansion threshold.

In summary, the industrial distribution market has softened. Major players are experiencing softening sales volume and do not expect this to change in the near future. With this difficult climate, distributors are focusing on cost controls, and maintaining profit margins. These trends, along with the availability of capital, help explain why industrial distributors are continuing to pursue inorganic growth via acquisition.

Read Industrial Distributor M&A Pulse Q3 2016 Full Report

PMCF-Pulse-Industrial-Distributor-2016-Q3

File size: 544.84 KB
Download Preview

Stay Informed

Subscribe to our newsletter for the latest industry updates

Subscribe

Recent Publications

Plastics & Packaging M&A Update – November 2020
Industrial Distributor M&A Pulse – Q3 2020
Food & Beverage M&A Pulse – Q3 2020
Plastics & Packaging M&A Update – October 2020
Medical Technology M&A Pulse – Q3 2020
Contact

Follow Us On

Securities offered through P&M Corporate Finance, LLC. Member of FINRA and SIPC.

blank
Cfi Logo White 94x94 On About

Home

  • About
  • Team
  • Careers

M&A 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

©2021 PMCF

  • Member SIPC​
  • Member FINRA
  • FINRA Broker Check
  • Business Continuity Plan​
  • Disclaimer​
  • Privacy Policy​
Cookie Notice: This site uses cookies to provide you with a more responsive and personalized service. By using this site you agree to our use of cookies. Please read our Privacy Policy for more information on the cookies we use.AgreePrivacy policy