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

Industry Updates

  • Back to News & Insights

Industrial Distributor M&A Pulse – Q4 2018

  • March 4, 2019
  • Industry Updates
  • Industrial Distribution, Industrials
Featured Pulse Industrial Distributor

2018 industrial distribution M&A volume convincingly exceeded 2017 levels (increasing 7.0% globally and 16.2% in the US). This increase in volume correlates to continued economic strength in both Europe and the US. Despite increasing deal volumes in 2018, public equity performance and macroeconomic indicators suggested greater overall uncertainty and decelerating growth in Q4, driven by US and global markets’ negative reaction to increased US interest rates and continued unrest in global trade. Public valuation multiples reacted in-line with overall market volatility, with the mean industrial distribution EV/EBITDA multiple decreasing from 13.1x in Q4 2017 to 10.3x in Q4 2018 (compared to the S&P 500, whose mean multiple dropped from 12.8x in Q4 2017 to 11.0x in Q4 2018).

In the US, Q4 2018 macroeconomic indicators continue to point towards economic expansion (although at a slower rate – see charts on page 5). The Institute for Supply Management (“ISM”) New Orders Index registered above 50 (the threshold for economic expansion) for the 36th consecutive month in December 2018, finishing at 51.1 vis-à-vis 61.8 in September 2018. The ISM Purchasing Managers’ Index closed at 54.1 in December 2018, down from 59.8 in September 2018. The Chicago Fed Midwest Economy Index, which measures non-farm economic indicators, declined to 0.2 in December 2018 from 0.3 in September 2018 (both values still indicate expansion). The ISM Production Index finished December 2018 at 54.3, a significant decrease from September 2018 at 63.9, but still above the threshold indicating expansion.

Read Industrial Distributor M&A Pulse Q4 2018 Full Report

Download Preview

 

Stay Informed

Subscribe to our newsletter for the latest industry updates

Subscribe

Recent Publications

Packaging M&A Update – October 2023
Plastics M&A Update – October 2023
Human Capital Management M&A Pulse – Q3 2023
Software & Technology M&A Pulse – Q3 2023
Plastics M&A Update – September 2023
Contact

Follow Us On

Cfi Logo White 94x94 On About

Home

  • About
  • Team
  • Careers

Services

  • Sell Side M&A Advisory
  • Buy Side M&A Advisory
  • Capital Raising
  • Transaction Planning & Strategic Advisory

Industry Expertise

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

News & Insights

  • Transactions
  • News
  • Industry Updates
  • Perspectives

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.

©2023 PMCF

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