Continued Strength In Deal Volume, Downward Pressure On Valuations
Industrial Automation acquisition numbers for Q1 2022 are similar to first quarter numbers from the previous 5 years. This is a positive trend for the industry, specifically in contrast to the slight decrease in North American acquisitions overall.
Overall M&A activity will likely continue its strong run into 2022, but it will be difficult to top the historic levels of deal value and deal volume on the heels of pent-up demand seen in 2021.
Highlights from the report:
- Overall acquisition activity in North America was down some in Q1 2022.
- The current multiples average is 6.7x EBITDA for companies with an average of $35M in revenue.
- Inflation, broken supply chains, and war in Europe triggers extreme volatility in the public markets.
- Major companies such as Rockwell Automation, Emerson Electric and Schneider Electric tout acquisitive growth as a key strategy in 2022.
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