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 2020, the global, all market average Enterprise Value to EBITDA multiple for listed Industrials companies was 11.3x. This is slightly down on the previous six months, when listed Industrials companies were trading on a multiple of 11.7x. Within the Industrials sector, trading multiples varied between 8.8x and 13.3x 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 01/07/2020.

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

Industrials - graph 2

The average multiple of EBITDA* paid globally in Industrials transactions declined over the past few years. It currently stands at 8.4x. 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 H1 2020, there were 3,050 transactions globally in the Industrials sector. This is down on the preceding 6 months, when there were 3,531 transactions. Although there has been a decline in the annual number of transactions since 2015, there is still a good level 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.