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
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
Contact

Industry Updates

  • Back to News & Insights

Industrial Distributor M&A Pulse – Q4 2020

  • March 17, 2021
  • Industry Updates
  • Industrial Distribution, Industrials
Featured Pulse Industrial Distributor

Industrial Distribution M&A volume in Q4 2020 lagged equivalent 2019 levels both domestically and globally. 2020 US Industrial Distribution M&A activity decreased 23.6% to 266 transactions. 2020 global activity also fell short of 2019 levels, decreasing 21.2% to 612 transactions. Although low compared to 2019 levels, global and domestic M&A volumes reflect an increasingly optimistic market environment. A 23.6% Q4 2020 decline in Industrial Distribution M&A volume is markedly improved over YTD Q3 2020’s decline of 38.4%, and global volumes realized a similar trend. Rebounding M&A volumes, particularly evident in Q4 2020, reflect the optimism acquirers and investors have around economic recovery and pandemic resolution. Public equity markets reflect this optimism, with public equity valuations continuing to surpass Q4 2019 levels. S&P 500 valuation multiples increased from 14.1x to 17.1x in Q4 2019 and Q4 2020, respectively.

Manufacturing sector indicators continued to recover in Q4 2020 after remaining in contractionary territory through the beginning of the year. The Institute for Supply Management (“ISM”) New Orders Index increased to 67.9 in December 2020, after starting the first half of the year in contractionary territory. The ISM Purchasing Managers’ Index increased to 60.7, up from 55.4 in September 2020. The ISM Production Index increased to 64.8 in December 2020 after contractionary levels from March to May 2020. The Chicago Fed Midwest Economy Index, which measures non-farm economic indicators, increased to 1.3 in December 2020, indicating above-average growth for the Midwest economy.

Read Industrial Distributor M&A Pulse Q4 2020 Full Report

Download Preview

Stay Informed

Subscribe to our newsletter for the latest industry updates

Subscribe

Recent Publications

Food & Beverage M&A Pulse – Q4 2022
Industrial Distributor M&A Pulse – Q4 2022
Packaging M&A Pulse – 2022 Year In Review
Plastics M&A Pulse – 2022 Year In Review
Software & Technology M&A Pulse – Q4 2022
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.

©2022 PMCF

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