OMA Connections Partner, BDO, has just published its Q1 2017 review and outlook for merger and acquisition (M&A) activity among the manufacturing & distribution (M&D) sector.
BDO reports that: “M&A activity in the … sector was down approximately 15 percent in 2016. A decline was expected after a record 2015, and amplified by the sluggish economy and a brutal election season, which delayed sale decisions.”
And concludes: “… Valuations remain high at 9.0x EBITDA on average. Business owners are smart to invest in their employee base through apprenticeship programs, which will ultimately add value to their businesses when the time is right for a sale. The U.S. economy appears to be gaining steam, based on key measures such as GDP, the Institute for Supply Management (ISM) Index, unemployment, wage growth, and consumer confidence. All things considered, 2017 is ripe for an active year in terms of M&A activity in the M&D sector.”
Read BDO’s full 4-page report here. 1/18/2017