Q4 2023

Industrials M&A Update

In Q4, the Industrials sector index increased 13.5% and outperformed the S&P 500 index, which increased 11.2% over the same period.
The median EV/EBITDA multiple in the Industrials sector for reported Private Equity deals increased to 11.9x in 2023 from 10.0x in 2022, but decreased for strategic deals to 6.7x in 2023 from 14.2x in 2022.
M&A deal volume in the Industrials sector increased 15.4% in Q4 to 488 completed transactions from 423 in Q3, but decreased 1.8% from 497 deals in Q4 of the prior year.
As a % of total capital invested in M&A transactions in 2023, private equity participation increased to 39.3%, up from 36.7% in the prior year.
Europe was the most active region in Q4 with 240 deals. Most notable in the European market was VT5 Acquisition Company’s $311.1 million acquisition of R&S Group through a reverse merger in December 2023.