For M&A investors, 2021 will be a year to remember. How will 2022 stack up? As we head into the new year, Harris Williams Industry Group Heads share their views on which trends will drive growth, key investor considerations, and the opportunities to be found in each of the industries we cover. We look forward to pursuing these opportunities in partnership with our clients in the months to come. 

How do you feel about M&A conditions heading into 2022 within your industry?

2021 has been a great year for industrials subsectors, and our backlogs are very healthy. We don’t think there are any exogenous issues that would change conditions significantly heading into 2022. The supply chain will unlock, consumers will continue to spend, and there will still be plenty of liquidity. Even if there is some moderation compared with 2021, 2022 will still be a very good year.

What should M&A investors keep top-of-mind in your industry this year?

Investors need to be mindful of the supply chain as it continues to loosen up. What are the implications on companies’ input costs, including raw materials? What are the implications on lead times for their customers? We think the supply chain will come back online at a steady pace, and when it does, there will be a need for companies to make any necessary adjustments to their operating models based on the speed of recovery. 

ind_quote-graphic_v1.pngName a few of the most significant trends that will drive growth in your industry in 2022.

We’ve always been big believers in the automation sector and how it’s going to benefit from ongoing growth in e-commerce. Our view has only brightened during the past 18 months. We’re going to continue to see companies trying to push more through their distribution channels at higher speed and higher quality. All of that supports demand for automation products and services.

We’re also seeing increased interaction between industrial subsectors and other end markets that we hadn’t seen in the past, yielding growth in areas like industrial technology and healthcare packaging. That trend is going to continue to proliferate—we’re working on more engagements with our Technology and our Healthcare & Life Sciences groups than ever before.

ind_mcnulty-graphic_v1.pngHow has your team delivered exceptional client service in this busy market?

The market ran at unprecedented pace this year, and we made sure to consider what that meant for our clients, who had to successfully run businesses while helping to sell them.

That shift in perspective focused on protecting our clients’ time. From more carefully planned meetings with tighter agendas to more targeted sales processes with higher-probability buyers, we revisited everything we do to be as efficient as possible. 
 

Describe the market in three words: 

EXTRAORDINARY, INSPIRING, INTENSE

Select 2021 Transactions by the Harris Williams Industrials Group

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The Harris Williams Industrials Group has experience across a variety of sectors, including advanced manufacturing; building products; chemicals and specialty materials; industrial technology; and packaging. For more information on the firm’s Industrials Group and other recent transactions, visit the Industrials Group’s section of the Harris Williams website.

To learn more, please contact our senior bankers.