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 v2

At the end of H2 2019, the global, all market average Enterprise Value to EBITDA multiple for listed Industrials companies was 11.7x.This was slightly up on the previous six months and also higher than the previous year, when listed Industrials companies were trading on a multiple of 10.8x. Within the Industrials sector, trading multiples varied between 9.1x and 14.0x 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 10/01/2020.

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 declined slightly over the past few years. It currently stands at 10.3x. 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 2019, there were 3,531 transactions globally in the Industrials sector. This is slightly up on the preceding 6 months, when there were 3,232 transactions. Although declining over the last few years, the uptick in the last 6 months suggests demand for Industrials businesses remains fairly buoyant.

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