The second quarter of 2025 for M&A in the manufacturing and industrial space has been, well, interesting.
Generally speaking, tariffs and ongoing political volatility continues to keep sellers on the sidelines and investors remain leery. Those that are dependent upon imports for core components of finished goods are facing real challenges at the moment with uncertain outcomes for the future. Needless to say, trying to pass though price increases is never easy, especially as the world is pushing both vendors and suppliers to absorb new costs.
However, there is a silver lining – those companies that have proven to be critical and/or have a cost+ model, are more insulated from this recent volatility and some have even been more aggressive in asking for increases (while they can). These companies are well positioned for the future thus investors are scrambling to invest capital (at high valuations) behind these groups.
If you would like to explore the ramifications for your business, please don’t hesitate to reach out!