Industrial Services / USA

In 2024, the US industrial services sector saw some interesting trends in mergers and acquisitions (M&A):

• Overall, M&A activity slowed down a bit. There was a 5% dip compared to the same time last year, and a bigger 24% drop from the previous quarter. This might be because companies are getting ready for lower interest rates in the future.

• Deal volume stayed pretty steady, though. In the third quarter of 2024, there were 428 deals, which is slightly more than the previous quarter and a little up from the same time last year. However, the total money invested in these deals went down by 58.2% compared to the same time in 2023.

• Private equity companies were still very active, especially in companies that provide facility services. They were involved in 66% of all deals in the third quarter.

• The Industrial Supplies & Parts sector was the busiest, with 193 deals. Machinery and Electrical Equipment and Aerospace & Defense were also pretty active.

• Looking ahead, things are looking up for M&A activity in 2025. We might see more deals because the new administration might be more relaxed about M&A regulations, and interest rates could go down.

These trends show that the M&A landscape in the US industrial services sector is always changing.

We source Industrial Service businesses for Private Equity, Search Funds and Corporates.