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Engineered Components M&A Industry Update | April 2023

M&A Engineered Components
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M&A Industry Update:

In this M&D M&A Industry Update, we explore the M&A activity and projections for the Engineered Components sector within the M&D industry. Within this report we provide key themes that are driving deal activity for Engineered Components companies, M&A activity updates, and up-to-date market data. The purpose of this report is to educate business owners and financial service providers on the Engineered Components space trends and activity for April 2023, and projections for the future.  

The latest M&A report for the Engineered Components sector reveals some intriguing insights:

  • M&A Activity: The past year saw a 24% drop in M&A deal volume in the Engineered Components sector. However, there’s a silver lining as this downtrend is showing signs of stabilization, aligning with historical averages.
  • Valuation Multiples: After a sharp decline in 2022, valuation multiples are finding their footing. The current average EBITDA multiple hovers between 7.0x-7.5x, and this stability is expected to persist in the near future.
  • Market Performance: Publicly traded companies in this sector are shining stars, outperforming broader markets. The Objective EC Index, which tracks these companies, has more than doubled the performance of the Russell 2000 over the past five years.
  • Economic Overview: The first quarter of 2023 saw a modest 1.1% growth in Real GDP. While this is below expectations, experts forecast a continued slow pace with Real GDP growths of 0.7% and 0.8% for 2023 and 2024, respectively.

 

For those interested in diving deeper, the full report offers comprehensive data, charts, and expert analyses.

To read the full Engineered Components Industry Update, download below

If you are interested in discussing any of the analysis from this report, or if you would like to discuss your own transaction goals contact the Managing Directors from our M&D Industry Group below, or reach out at (800) 849-7010 or [email protected] to be directed to the appropriate team member.

About the Authors:

Dan Shea

Managing Director, M&D Practice

310.903.2163

[email protected]


Disclosure

This news release is for informational purposes only and does not constitute an offer, invitation or recommendation to buy, sell, subscribe for or issue any securities. While the information provided herein is believed to be accurate and reliable, Objective Capital Partners and BA Securities, LLC make no representations or warranties, expressed or implied, as to the accuracy or completeness of such information. All information contained herein is preliminary, limited and subject to completion, correction or amendment. It should not be construed as investment, legal, or tax advice and may not be reproduced or distributed to any person.  Securities and investment banking services are offered through BA Securities, LLC Member FINRA, SIPC. Principals of Objective Capital are Registered Representatives of BA Securities. Objective Capital Partners and BA Securities are separate and unaffiliated entities.

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