In this report, available to download below, we feature a new, expanded quarterly report with data on merger and acquisition trends and financial metrics for the largest publicly traded distributors across diverse sectors.
In partnership with Houlihan Lokey, an investment banking firm, we have added data on M&A activity trends across all industries (not just distribution), as well as valuation multiples for deals in all industries.
Why is this data valuable to you? This data can help distributors, manufacturers and others who serve the industry:
Gauge M&A activity. The data presented on the first page of this report provides insight into deal activity across industries. For example, in the fourth quarter 2012, deal volume spiked, largely due to expected tax changes in the first quarter 2013. Deal volume tanked during the recession, reflected in the low figures in 2009 on the graph.
Understand M&A transaction valuation trends. While there are many factors that go into how a company is valued, the graphs on the first page provide a high-level view of median EBITDA transaction multiples for those companies that report the data. This will largely reflect data from larger acquirers, and in many cases, public companies, but can still provide perspective on both overall trends year-to-year, as well as current-year multiples by size of deal. In general, the smaller the acquired company is, the lower the multiple. Note: The data on the top of the second page reflects trading multiples for the public companies in the table below it.
Benchmark your quarterly performance. On the second page of this report, you will see a number of balance sheet metrics for the largest publicly traded distributors, including margins, return on invested capital and working capital to sales.
Understand the differences in performance across industries. You’ll notice differences in margin, sales performance and more between, for example, gases and hardgoods distributor Airgas (55.9% GM), building products distributor A.M. Castle (13% GM) and electrical and datacomm distributor Anixter International (22.6% GM), in part due to the differences in product mix and end-markets these distributors serve. See the table below for a breakout of the financial metrics data on page two by industry.
Track the industry’s performance. The financial metrics presented on the second page of this report also provide a good way to scan sales growth figures for the past 12 months as of the end of the most recent quarter.
Financial Metrics by Industry
To view the same data in alphabetical order, simply download the full two-page PDF of this report below.
The materials on these pages are for informational purposes only. If you have any questions or feedback on the data on these two pages, please email me at email@example.com.