BDO Capital Q1 2023 Manufacturing M&A Market Update

The manufacturing sector demonstrated continued momentum in 2022 despite facing various macro-economic headwinds. Inflationary pressures, supply chain bottlenecks, and labor shortages, combined with a high interest rate environment, sparked concerns around the Fed’s ability to achieve a soft landing. While M&A activity is down from 2021, transaction volume in 2022 was in line with pre-pandemic levels. Well-capitalized investors continued to seek quality assets to add to their portfolios, resulting in healthy multiples and steady deal flow.