The third quarter of 2025 for M&A for manufacturing and industrial businesses continues to be challenging, but there are still opportunities for well run platform companies.
Overall, tariffs continue to dampen the M&A activity in the manufacturing sector as there has yet to be sufficient clarity to pull both sellers and buyers off the sidelines. While there is renewed hope for minimal impact with the U.S.’s largest trading partners, there is still too much uncertainly for owners to initiate a sale process for the foreseeable future. Affected sellers may want to wait until policies are finalized and there is definitive proof that the business can pass through the impact of tariffs to their customers.
With that said, there are opportunities for those that are prepared, have a couple years of demonstrative growth, and a committed management team. There is still plenty of demand from strategic acquirers and private equity investors, but a shortage of attractive opportunities. Furthermore, interest rates are expected to continue to decline which should spur additional activity over the next few quarters.
If you would like to explore options, please feel free to reach out!