Industries

Helping clients meet their business challenges begins with an in-depth understanding of the industries in which they work. That’s why KPMG LLP established its industry-driven structure. In fact, KPMG LLP was the first of the Big Four firms to organize itself along the same industry lines as clients.

How We Work

We bring together passionate problem-solvers, innovative technologies, and full-service capabilities to create opportunity with every insight.

Learn more

Careers & Culture

What is culture? Culture is how we do things around here. It is the combination of a predominant mindset, actions (both big and small) that we all commit to every day, and the underlying processes, programs and systems supporting how work gets done.

Learn more

Creating value in a turbulent world: Q4’22 M&A trends in IM

Despite a sluggish 2022, IM M&A is expected to pick up in 2023, driven by depressed assets, portfolio rationalization, and a surplus of cash.

Following a record-breaking year in 2021, the last 12 months saw sluggish M&A activity in the industrial manufacturing (IM) sector, with deal volume falling by 17 percent, and deal value plummeting by 51 percent. This trend was repeated across the various subsectors.

According to a recent KPMG survey of deal makers in manufacturing, the major barriers to dealmaking were the high cost of capital and interest rates, with half of respondents expecting to see a further decrease in activity in 2023.1

Private equity’s (PE) share of industrial manufacturing deals remained steady at 40 percent, although PE buyers accounted for just over half of total IM transaction value. PE deals overall fell by 19 percent to 3,602, with value down by 28 percent to $201.3 billion. The largest deal of the year by some margin was Blackstone’s $63.0 billion purchase of Italian infrastructure giant Atlantia.2

Across subsectors, aerospace & defense (A&D) experienced the greatest decrease in deal volume (29 percent) while automotive suffered the lowest fall of just 11 percent. Strategic deal value in transportation and logistics (T&L) fell by a huge 68 percent, although the impact was softened by a marginal (1 percent) increase in PE deal value. Automotive PE deal value was also heavily down by 76 percent; however, the value of strategic automotive deals fell by less (19 percent), as corporates continued to invest in EVs.

Respondents to the KPMG survey remain optimistic about M&A prospects for 2023. Looking ahead to 2023, we see the following trends driving IM deal activity:

  • Rationalization of complex portfolios to focus on core strengths, with regular divestments creating value for shareholders
  • A rise in buying and separating, calling for strong value-creating capabilities on the part of buyers—something that PEs have proved adept at

In a challenging macro-economic environment, combined with often unrealistic seller expectations over price, buyers will require an “all-synergies-on-deck” approach to prevent value leakage.

Footnotes:

  1. Source: KPMG Annual Senior Executive M&A Survey, December 2022
  2. Source: “Blackstone and Benetton family take Atlantia private in blockbuster infrastructure,” Bocconi Students Investment Club,May 1, 2022

Dive into our thinking

Creating value in a turbulent world

Download PDF

Explore more insights

Explore other services tailored to your business

Thank you!

Thank you for contacting KPMG. We will respond to you as soon as possible.

Contact KPMG

Use this form to submit general inquiries to KPMG. We will respond to you as soon as possible.

By submitting, you agree that KPMG LLP may process any personal information you provide pursuant to KPMG LLP's Privacy Statement.

An error occurred. Please contact customer support.

Job seekers

Visit our careers section or search our jobs database.

Submit RFP

Use the RFP submission form to detail the services KPMG can help assist you with.

Office locations

International hotline

You can confidentially report concerns to the KPMG International hotline

Press contacts

Do you need to speak with our Press Office? Here's how to get in touch.

Headline