Industrials

Broad and deep expertise across multiple
industrial sectors

 

 

Key industrials market themes:

1

New Era of Personal Transportation

Connected cars are making in-roads in the automotive industry; software designers are now more in demand than mechanical engineers. This coupled with the electrification of vehicles will lead to manufacturers adjusting their strategy. Large auto-tech deals quintupled in H1 2017 compared to H1 2016.

2

Digitalisation in the Chemicals Sector

Chemicals companies are seeking to improve customer experience by utilising the latest digital technology. One example of this is to track usage patterns of chemicals and products and proactively addressing customer needs.

3

Utilities Companies Empower Consumer

Schemes are being trialled that allow consumers to own grid-tied solar panels. These panels, and energy storage thereof, are provided by a utility company and allow the consumer to be a “self-consumer” of power.

4

Manufacturing now Multifaceted

Modern-day manufacturing has now become a multi-sector problem. With the rise of connected factories, and in-built logistics systems, companies view manufacturing as an area for sector-by-sector improvement.

5

Emerging Economies Taking Market Share

Engineering and contracting firms in rapidly growing economies have begun to adopt an outward-facing approach. Previously, these firms focused on their respective domestic markets, but are now competing on the world stage.

6

Automotive M&A Expected to Accelerate

The automotive sector has rapidly emerged as a key technology battleground, that has seen established players acquiring competence at all stages of the value chain.

7

Use of Data Analytics Shaping Maintenance

‘Condition-based maintenance’ is altering the way that service contracts and warranties are provided by companies. Constant monitoring of equipment allows companies to monitor wear, usage patterns and service timelines.

International M&A trends & market analysis

The following industrials sector market data and commentary are produced by our market research team and global industrials sector specialists as part of our semi-annual all sectors global report. The data is organised into all industrials businesses valued over $5m, or “All Market”, and industrials businesses valued in the range $5m to $150m, or the “Lower-Mid Market”.

Historic valuation trends:
The following chart shows international industrials sector business valuations over time, based on semi-annual averaged transactional data:

industrials sector tev ebitda.jpg

 

Regional valuation variation:
The following chart shows international industrials sector business valuations by region, based on listed company multiples as at mid August 2017:

industrials regional tev ebitda.jpg

 

Sub-sector valuation variation:
The following chart shows international industrials sector business valuations by sub-sector, based on listed company multiples as at mid August 2017:

industrials sub-sector tev ebitda.jpg

 

For further information as to how these valuations and statistics are computed, and their impact on your transaction, please contact us.