The Dean Dorton Manufacturing and Distribution M&A Market Overview offers an in-depth examination of the latest industry trends and dynamics. Following a subdued 2023, the M&A market gained momentum in Q1 2024, driven by robust earnings, anticipated interest rate cuts, and a resilient equity market. M&A volume surged by 59% to $431.9 billion, with cash-rich buyers actively pursuing acquisitions. The manufacturing sector saw its first expansion in 16 months due to favorable demand, strengthened output, and improved supply chain conditions.
Increasing demand, fueled by reduced customer softness and expanding new orders, indicates favorable investment conditions. Despite ongoing raw material supply chain challenges, early signs of recovery among suppliers suggest potential improvements. Production execution surged in early 2024, maintaining stability through March and signaling expansion. Looking ahead, anticipated interest rate cuts by late 2024 could boost investor confidence and spark renewed interest in strategic transactions, potentially revitalizing the M&A landscape as we move into Q1 2025. This shift in monetary policy is likely to create a more favorable environment for M&A activities across key sectors.
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