M&A Cools Off in Q4
Industrial automation M&A cooled off further in Q4 2025, following a broader M&A trend of slower
deal count growth but larger deals driving higher capital flows. For the full year 2025, deal count
was down only modestly vs. 2024 and was up from 2023. Still, we see bright spots in the industry
that can drive a re-acceleration of M&A in the sector in 2026, driven by strong fundamental trends, still near-record dry powder by financial buyers and continued acquisitive demand by strategics.
Highlights from the report:
- IA deal count slipped to 18 deals in Q4 from 24 in Q3 2025 and 21 in Q4 2024.
- The total number of PE and VC IA transactions increased to 162 in 2025 vs. 158 in 2024 and 159 in 2023.
- Multiples for Industrial Automation M&A comps – a proxy for private market multiples – ticked higher in 2025, especially for manufacturing companies.
- Public IA comps have ticked lower in 2025 amid a broader decline in multiples for industrials businesses, especially those that are exposed to geopolitical and trade risks.
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