Strategic Alternatives cover image

Strategic Alternatives

Industrials Dealmaking Makes a Comeback

Oct 6, 2023
Recent deals in the industrial sector suggest an unleashing of pent-up M&A demand due to the new interest rate environment. The podcast discusses the impact of macro uncertainty and higher interest rates on deal-making. It also highlights the effects of wage pressures, supply chain challenges, and increasing CEO confidence on mergers and acquisitions in the industry. The potential surge of deals in the future is discussed, considering the availability of fresh capital and market dampening factors like high rates and inflation.
22:09

Podcast summary created with Snipd AI

Quick takeaways

  • Despite initial challenges, the industrial M&A market is improving with pockets of opportunity in sectors such as construction, chemicals, packaging, aerospace, defense, and transportation.
  • Labor scarcity and supply chain disruptions persist, but companies in the industrial sector are confident in managing through these challenges and pursuing strategic acquisitions for growth.

Deep dives

Positive outlook for M&A market in the industrial sector

Despite the initial impact of macro uncertainty and high interest rates, the industrial M&A market is showing signs of improvement. Volumes may be slightly lower compared to the previous year, but there are indications of a steady recovery as the year progresses. Pockets of opportunity exist in the industrial sector, with companies experiencing real profitability and cash flows. The key factor affecting deal-making is the cost of financing, which has increased due to higher interest rates. As market participants adapt to these new conditions, the outlook for deal activity in the industrial sector is encouraging.

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.
App store bannerPlay store banner

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode