Distribution M&A Pulse – Q4 2023

Q4 2023 – QUARTERLY M&A RECAP & 2024 OUTLOOK

• The US Distribution sector saw mixed signals in M&A activity during Q4 2023. Deal volume remained relatively stable at 99 closed deals, representing a slight 4.8% decline year-over-year. However, a notable shift emerged with financial buyers, as their transactions nearly doubled from five in Q4 2022 to nine in Q4 2023. Global Markets experienced a more significant drop year-over-year, with Q4 2023 volume of 161 declining 25.8% from 217 in Q4 2022. While a year-over-year decline, Q4 2023 was a rebound from the prior quarter, of 146 deals closed.
• Macroeconomic indicators in Q4 2023 remained relatively flat throughout the year. While the ISM new order index exhibited single-digit increases, notable positive changes included housing and new permit starts, The Distribution Index, ISM Production Index, and Purchasing Manager’s Index collectively represented a neutral perspective on the near-term outlook. Increases in housing starts point toward a positive sentiment in the general economic outlook for 2024.

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