Industrial Machinery & Components M&A Update | Q1 2025

Latest market trends, valuation levels and deals in the industrial machinery & components (IM&C) sector

The latest report highlights rising valuation levels and a significant increase in transaction activity in the IM&C sector in Q1 2025. At the same time, the share of cross-border deals declined, driven by geopolitical tensions, new trade barriers, and a shift toward regional consolidation.

Our analysis shows that the valuations of publicly listed IM&C companies rose to 8.9x EV/EBITDA by the end of Q1 2025, up from 8.6x in the previous quarter. This increase reflects improved sentiment and solid performance in segments such as automation and energy technology. Business models with a strong software or service component continue to command valuation premiums, while the long-term median for the listed peers remains unchanged at 9.4x. Recent market volatility is not yet visible in these figures.

With 269 transactions, the IM&C sector recorded its highest level of deal activity in the past twelve months. Strategic buyers accounted for 78% of all deals, while financial investors’ share slightly declined to 22%. Targets focused on digitalization, efficiency, and sustainability remained in high demand—despite a persistently challenging environment.

Cross-border transactions accounted for only 46% of all deals, the lowest level in the past four quarters, pointing to growing caution amid geopolitical risks, new tariffs, and increasing supply chain complexity. Nearshoring, regional synergies, and strategic resilience are gaining importance across the sector.

Our report highlights key industry trends and provides an up-to-date insight into valuation levels and selected transactions.

We welcome your feedback and are happy to discuss the latest industry trends with you.