BDO Capital Manufacturing & Distribution Newsletter

January 2017

M&A activity in the Manufacturing & Distribution (M&D) sector was down approximately 15 percent in 2016. A decline was expected after a record 2015, and amplified by the sluggish economy and a brutal election season, which delayed sale decisions. Financial buyers made gains in the sector, backing nearly 40 percent of all closings, including platform and add-on investments, in 2016. This figure is up from 34 percent just two years ago. Election results buoyed M&D investor optimism, given the new administration's commitment to propelling the U.S. manufacturing industry. Although time will tell if optimism is warranted, our M&D Index beat the S&P 500 by more than 2x in the 3 weeks following Election Day. Read about this and other trends in the industry in BDO Capital's Manufacturing & Distribution Q1 2017 M&A Review & Outlook

BDO Capital Advisors, LLC, a FINRA/SIPC member firm, is a separate legal entity and is an affiliated company of BDO USA, LLP, a Delaware limited liability partnership and national professional services firm.