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Metals & Manufacturing M&A Pulse – Q3 2023

December 5, 2023

Q3 2023 – QUARTERLY M&A MARKET RECAP

  • Global Metals and Manufacturing M&A deal volume saw a decline in Q3-23, totaling 275 transactions, a 14.8% decrease over Q3-22 period’s total of 323.
  • U.S. Metals and Manufacturing M&A deal activity rebounded in Q3-23, totaling 96 transactions, an increase of 10.3% from the prior year’s quarter. U.S. transactions saw in increase in strategic buyer activity, as their share of transaction totals increased from 87% to 93%.
  • Headwinds persisted in the third quarter, with the Industrial Production Index remaining flat and the ISM’s Purchasing Managers Index staying in contraction territory. Due to uncertainty around the UAW strike, Automotive transactions accounted for just 15.9% of M&M transactions in Q3.
  • One notable trend within the M&A landscape has been private equity’s declining share of deals. Because this buyer segment tends to be more reliant on access to leverage to finance their transactions, heightened borrowing costs have constrained their ability to consummate deals. However, private equity has $1.4 trillion of uninvested capital, known as dry powder, which makes them a formidable buyer group going into Q4.

 

Read Metals & Manufacturing M&A Pulse Q3 2023 Full Report

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