BGL Industrials Insider 

Long-Term Outlook for the Building Products Industry Remains Favorable

While Building Products M&A activity has slowed, the pipeline of opportunities continues to grow as sellers await the opportune time to market their businesses amid uncertainties in the housing market and the broader economy, according to a new industry report released by the Building Products investment banking team of Brown Gibbons Lang & Company (BGL).

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ANDREW K. PETRYK
Managing Director

The issue also features exclusive insights from executives at Validor Capital, Renovo Capital, Drum Capital, and others. The insights address diverse building products industry trends ranging from the demand outlook and operational challenges to M&A and valuations.

Key takeaways include:

  • The long-term outlook for the Building Products industry remains favorable.
     
  • While market uncertainty has left some investors sidelined, strategic buyers are leveraging their capital and synergies to make acquisitions at reasonable valuations.
     
  • The financing market has pulled back leverage but continues to show appetite for high-quality assets.
     
  • Consolidation is continuing, with technological innovation and supply chain management cited among the drivers of acquisition activity in the coming months.

Despite headwinds, buyers continue to seek high-quality building products industry acquisition targets with strategic buyers leveraging the current buying environment to acquire tuck-in opportunities and private equity firms looking for platform investments at attractive valuations.

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