Broad and deep expertise across multiple
industrial sectors

Our industrials advisers combine a broad range of experience across the fine chemicals, precision engineering, aerospace, aggregates and housebuilders sectors, providing the cross-sector insight and contact networks required to achieve the best results for our clients.

Members of our advisory team have worked in an operational, management or advisory capacity for a wide variety of companies in the sector, including:

How much are companies worth in the Industrials sector?

The following 3 graphs will give private business owners a broad indication of the value of their business:

1. The Enterprise Value to EBITDA* multiples on which comparable listed companies are trading
Industrials Graph 1

At the end of H2 2020, the global, all market average Enterprise Value to EBITDA multiple for listed Industrials companies was 13.9x. This is an increase on the previous six months, when listed Industrials companies were trading on a multiple of 11.3x. Within the Industrials sector, trading multiples varied between 12.1x and 16.1x across the range of sub-sectors. Smaller businesses generally traded on lower multiples.
* EBITDA is Earnings Before Interest, Tax, Depreciation and Amortisation
† Note, the Enterprise Value to EBITDA multiples above are for listed businesses. By comparison privately owned businesses are generally valued at a discount. Listed company data was accurate at 04/01/2021.

2. The multiple of EBITDA paid by acquirers of comparable businesses

Industrials Graph 2

The average multiple of EBITDA* paid globally in Industrials transactions has increased over the past six months. It currently stands at 11.5x. When reviewing these multiples we break out businesses in the range $5-150m, as they tend to have unique attributes which affect their valuation. Smaller businesses have generally been sold on lower multiples.
* EBITDA is Earnings Before Interest, Tax, Depreciation and Amortisation
†Note, the transaction multiples above are calculated from raw historic data. This typically understates profits and therefore valuations actually achieved are generally at lower multiples of “normalised” profits.

3. The volume of M&A transactions and acquisitions

Industrials Graph 3

In H2 2020, there were 3,136 transactions globally in the Industrials sector. This is a slight increase on the preceding six months, when there were 3,050 transactions. The past quarter has shown an increase of demand for Industrials businesses.

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