Industrials

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 H1 2021, the global, all market average Enterprise Value to EBITDA multiple for listed Industrials companies was 13.8x. This is a slight decrease on the previous six months, when listed Industrials companies were trading on a multiple of 13.9x. Within the Industrials sector, trading multiples varied between 12.2x and 16.7x 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 05/07/2021.

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 13.2x. Despite the wider global circumstances, valuations for Industrials businesses have remained robust, and have significantly improved over the past year, demonstrating the sector’s strength.

When reviewing these multiples we break out businesses in the range $5-150m, as they  tend to have unique attributes which affect their valuation. The multiple for these lower mid-market transactions over the past six months, at 9.9x, is significantly higher than it was for H2 2020. This rebound suggests these businesses are following the all market trend of increasing valuations.
* 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 H1 2021, there were 3,897 transactions globally in the Industrials sector. This is a increase on the preceding six months, when there were 3,136 transactions. There has been little fluctuation in the number of transactions over the past year, demonstrating a certain resilience in the sector compared to others which were more heavily impacted by the current pandemic.

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