Growth In Deal Activity
M&A deal activity in the Industrial Automation sector has ticked up in the 3rd quarter of 2021, in particular compared to Q3 of 2020. A recent Deloitte Automation Report forecasted the IA sector to reach over$15 trillion by 2030.
Because of the proliferation of industrial automation requirements, many firms servicing this industry are expanding their own capabilities. Often, this expansion in capabilities is achieved through M&A.
Highlights from the report:
- Acquisition activity in North America has returned to similar numbers compared to previous years (excluding 2020). However, the total number of acquisitions for Q3 2021 was on the lower end of the trend.
- The current multiples average for various segments associated with the Industrial Automation Industry is 7.1x EBITDA.
- Industrial automation is now widely seen as an integral part of manufacturers’ urgent strategic response to many of today’s challenges.
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