Industry Overview
M&A activity in the North American industrial and commercial services industry slowed in 2023, with a year-on-year (YoY) decrease of 10% from the elevated levels seen in 2022.
However, buyer interest in the sector proved remarkably resilient amid rising interest rates, recession risks and poor public market performance, with annual transaction activity ~5% above the historical levels from 2015-2022.
Elevated interest rates, macroeconomic uncertainty and value expectations between buyers and sellers created challenges in the marketplace. Nevertheless, the industrial and commercial services industry remained strong and outperformed the broader market.
The M&A outlook remains positive due to the accumulation of dry powder, pressure to deploy capital and the fragmented nature of the industrial and commercial services sector.
The sector with the highest enterprise value (EV) / last 12 months (LTM) earnings before interest, taxes, depreciation and amortization (EBITDA) multiple is environmental services, with a 15.1x multiple. The sector with the lowest multiple is transportation and logistics services, with a 7.6x multiple.
Download our latest Industrial and Commercial Services Industry Insights to learn more.
