Insight

Biding time - M&A trends in industrial manufacturing

Dealmakers chose smaller targets to strengthen supply chains, implement and secure new technologies, and comply with ESG initiatives

Sharply rising interest rates have already tamped down the overall volume and value of M&A transactions, a trend likely to continue for the next few quarters as a global recession looms.

For the foreseeable future, mega-mergers are likely to remain on pause. According to KPMG Economics, as central banks strive to keep inflation at manageable levels, any dealmaking in the next 12 months is likely to be on a smaller scale as players look to leverage new technologies.

M&A transactions that backfill or plug gaps are smart, strategic moves and small enough to be achievable in this environment. The continuing need for more resilient supply chains presents opportunities for small-scale deals that augment vertical integration—for example, to ensure sources for electric vehicle (EV) battery materials or fleet maintenance and repair services.

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Todd Dubner

Todd Dubner

Principal, Strategy, KPMG US

+1 212-954-7359
Serena Crivellaro

Serena Crivellaro

Managing Director, Strategy, KPMG US

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Scott Heery

Scott Heery

Partner, Advisory, Financial Due Diligence, KPMG US

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Donald L. Zambarano

Donald L. Zambarano

Partner, Deal Advisory, KPMG US

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Ramahi Sarma-Rupavtarm

Ramahi Sarma-Rupavtarm

Advisory Managing Director, Strat - Perf. Transformation, KPMG US

+1 202-533-3869
Adil Khan

Adil Khan

Principal, Aerospace & Defense – Deal Advisory, KPMG US

+1 312-665-2525
Rudi Moreno

Rudi Moreno

Advisory Managing Director, Strat - TE, KPMG US

+1 847-312-6841