Insight

Manufacturers’ M&A sets stage for sweeping change

In 2021, industrial and manufacturing M&A activity reached record highs—and trends point to a healthy deal market in 2022.

Donald L. Zambarano

Donald L. Zambarano

Partner, Deal Advisory, KPMG US

+1 212 954 2049

Todd Dubner

Todd Dubner

Principal, Strategy, KPMG US

+1 212-954-7359

Lenny LaRocca

Lenny LaRocca

Partner, Financial Due Diligence, KPMG US

+1 313-230-3280

Hectic M&A activity in the industrial and manufacturing (IM) sector is both a catalyst for, and a response to, massive change. In 2021, IM companies doubled down on the transition to new digitally-enabled products and business models—everything from robotics to electric vehicles. The rationale for deal making has changed: from adding scale or gaining new customers, to finding new sources of growth with new kinds of products and business models.

M&A activity in IM soared to a new record of 10,173 deals worth $786 billion in 2021, 83 percent higher in value than in 2020 and 73 percent more than 2019. Deal volume jumped 41 percent in 2021, compared to 2020, and average value was 30 percent higher. (See the charts below for more)

Looking ahead, we believe these trends will drive healthy IM deal activity in 2022:

  • Supply chain disruptions are expected to drive a surge in M&A for component suppliers
  • The electrification of cars will have a profound effect on automotive suppliers—many may have to acquire or sell assets to survive
  • President Biden’s November 2021 infrastructure bill will lift industries involved in roads, bridges, tunnels, and other infrastructure sectors
  • Portfolio optimizations will lead to further restructuring among manufacturers, especially for diversified industrials
  • Entrepreneurs are favoring SPACs as a fast way to go public in new industries (e.g. commercial space, electric vehicles, electric vertical take-off and landing aircraft)

IM Deal Volume and Deal Value

A&D Deal Volume and Deal Value


 

Automotive Deal Volume and Deal Value

 

In this Q4’21 report, we unpack these and other key trends, including deep dives on three topics:


Download the full report to uncover what’s happening in these dynamic industries, how deals are being done today—and why.

Contact us

Donald L. Zambarano

Donald L. Zambarano

Partner, Deal Advisory, KPMG US

+1 212 954 2049
Todd Dubner

Todd Dubner

Principal, Strategy, KPMG US

+1 212-954-7359
Lenny LaRocca

Lenny LaRocca

Partner, Financial Due Diligence, KPMG US

+1 313-230-3280
Marc Craig

Marc Craig

Director, Advisory, KPMG US

+1 312-665-3203
Jim Adams

Jim Adams

National Aerospace and Defense Industry Leader, KPMG US

+1 310-766-3601
Jono Anderson

Jono Anderson

Principal, Strategy, KPMG US

+1 858-750-7330
Randy Fike

Randy Fike

Managing Director, Deal Advisory & Strategy, KPMG US

+1 850-247-5888
Bala Lakshman

Bala Lakshman

Managing Director, Strategy, KPMG US

+1 214-840-4005
Ford Phillips

Ford Phillips

Managing Director, Corporate Finance, KPMG US

+1 312-665-1537
Robert White

Robert White

Advisory Managing Director, KPMG US

+1 202-491-5303