The Industrial Manufacturing industry is experiencing a notable upturn in valuations as companies rebound from a sluggish 2023. The first quarter of 2024 saw Industrial Manufacturing public equity values increase 11.3% from the previous year and the median EV/EBITDA multiple increase half a turn to 10.2x.
With strong company performance in Q1-24, U.S. private equity buyer transactions doubled from the same quarter in the previous year, furthering the anticipated trend of strong financial buyer activity as the segment looks to deploy more than $1.4 trillion of uninvested capital.
Q1 2024 – QUARTERLY M&A MARKET RECAP
- Global Industrial Manufacturing M&A deal volume saw an increase in Q1-24, totaling 297 transactions, up 3.5% over Q1-23’s total of 284. During this period, private equity deal activity decreased by 14.2%, while strategic buyer activity increased by 7.2%.
- U.S. Industrial Manufacturing M&A deal activity remained flat in Q1-24 compared to Q1-23. One significant change between the two quarters was a doubling in financial buyer transactions, underscoring predictions that private equity groups will be formidable buyers in 2024 as they seek to deploy over $1.4 trillion of uninvested capital.
- After coping with unfavorable macroeconomic conditions in 2023, which resulted in lackluster company performance and a decline in M&A activity, businesses saw margin and operating performance improve in the first quarter of 2024. As operations continue to improve, it is expected that more deals will begin to come to market with both buyers and sellers ready to transact.
Read Industrial Manufacturing M&A Pulse Q1 2024 Full Report
