Q4 2024

Industrials M&A Update

In Q4, the S&P 500 Industrials Index decreased by 2.7% and was outperformed by the S&P 500, which increased by 3.0% over the same period.
The median EV/EBITDA multiple for reported private equity deals decreased to 11.0x in 2024 from 11.9x in 2023, but increased for strategic deals to 8.0x from 6.7x in the prior year.
M&A deal volume in the Industrials sector increased 9.1% in Q4 to 467 deals from 428 deals in Q3, but decreased 4.3% from 488 deals in Q4 of the prior year.
As a % of total capital invested in M&A transactions, PE participation decreased significantly in 2024 to 25.1% from 39.3% in 2023.
Europe was the most active region in Q4 with 224 deals. Most notably in Europe was KPS Capital Partners’ $3.9 billion acquisition of Innomotics, a German manufacturer of electric motors and large drive systems, in October 2024.