Michelle Ritchie’s Post

Very interesting read published by M&A WORLDWIDE Advanced Manufacturing experts! Inside you will find: 1) Characteristics of the sector 2) Motivations for M&A from sellers and buyers perspective 3) Valuation factors ... and much more.

In 2024, the manufacturing sector is witnessing a surge in M&A activity driven by easing inflation and interest rates, which have spurred increased capital investments. This growth is further fueled by recent U.S. legislation, including the Bipartisan Infrastructure Law and the CHIPS and Science Act, which promote infrastructure and manufacturing investments. Additionally, the focus on sustainability, technological innovation, and reshoring efforts is prompting manufacturers to seek strategic acquisitions. Despite these positive trends, challenges such as stringent due diligence and geopolitical uncertainties persist. Pando’s pre-diligence process equips manufacturing companies to capitalize on the current favorable M&A climate by thoroughly assessing operational strengths, financial health, and market positioning. This comprehensive evaluation helps identify potential synergies and integration opportunities, making companies more attractive to buyers. By addressing risks and enhancing value propositions, Pando ensures that manufacturers are well-prepared for negotiations and can secure optimal deals. This strategic approach aligns with the increased focus on sustainability, technological innovation, and resilience in the manufacturing sector, enabling companies to thrive amidst the ongoing M&A surge. #PandoPreDiligence

Supply chain resilience drives 18% YoY growth in global M&A deal activity in Q3 2024 #mergersandacquisitions, #supplychain, #automotive, #healthcare, #industrial https://lnkd.in/es7QU_dx

With inflation and interest rates easing, manufacturing investment is on the rise. Several large manufacturershave said they plan to increase capital investments and merger and acquisition deal-making in 2024, even as the economy continues through a period of slower growth. So what’s driving all this interest? New U.S. laws, including the 2021 Bipartisan Infrastructure Law, 2022 CHIPS and Science Act, and 2022 Inflation Reduction Act, all of which focus on infrastructure and manufacturing, have prompted some of the activity. In addition, investment in U.S. clean technology totaled $239 billion in 2023, and manufacturers are also making significant investments in innovative technologies and reshoring of production.  Demand for sustainability, innovation and defense are fueling increased dealmaking activity. Some manufacturers are focused on investing in automation and business processes to improve efficiency. When performing repetitive tasks, or those that require a high degree of accuracy and precision, robotics technology can improve product quality while reducing defects. The technology can also decrease equipment downtime, providing manufacturers with the ability to operate 24 hours a day, and increase worker safety in manufacturing operations. #manufacturing #merger #acquisition

Lower middle market manufacturing is experiencing a boom in M&A activity, fueled by the push for domestic production and technological innovation. Automation and AI advancements are making U.S. manufacturing more competitive, attracting investors seeking to capitalize on reshoring trends and government support for domestic industry. This shift presents significant opportunities for smaller manufacturers embracing smart technologies and those serving industries with stable demand. https://lnkd.in/enQJUCzR #growthstage #REAG #mergers #business #acquisitions #lowermiddlemarket #investmentbank

Manufacturers: Ready to expand your market and increase revenue? Our latest insights explore strategies like product diversification, M&A, and tech adoption to drive growth. Let Eide Bailly guide your success! #Manufacturing #GrowthStrategies

Manufacturers: Ready to expand your market and increase revenue? Our latest insights explore strategies like product diversification, M&A, and tech adoption to drive growth. Let Eide Bailly guide your success! #Manufacturing #GrowthStrategies

Manufacturers: Ready to expand your market and increase revenue? Our latest insights explore strategies like product diversification, M&A, and tech adoption to drive growth. Let Eide Bailly guide your success! #Manufacturing #GrowthStrategies

While the industrial manufacturing sector experienced a decline in #M&A activity in 2023, dealmakers are turning to creative partnerships and alliances to regain momentum. Find out what's driving manufacturing M&A in our latest paper, “Will M&A gain more traction in 2024? M&A trends in industrial manufacturing”. https://lnkd.in/eVHDvYxA

Manufacturers: Ready to expand your market and increase revenue? Our latest insights explore strategies like product diversification, M&A, and tech adoption to drive growth. Let Eide Bailly guide your success! #Manufacturing #GrowthStrategies