The Top 50 Lower Middle Market Industrials Investors & M&A Advisors [2026]

Industrials remains the dominant sector on Axial, accounting for 27% of all deals brought to market via the platform last quarter and 40% of Axial closed transactions so far in 2026.

Today, we’re excited to release the 2026 publication of the Top 50 Lower Middle Market Industrials Investors and M&A Advisors, a list featuring Axial’s 50 most active and sought-after members who specialize in industrials transactions over the past 12 months (methodology in the footnotes). 

In addition to celebrating these Top 50 members, this feature includes reflections and insight from our recent 2026 Industrials M&A Outlook survey.

Congratulations to these members for their dealmaking achievements!

The Axial Industrials Top 50

Not an Axial Member? Learn More →

Industrials Transactions Featuring Top 50 Members

Each transaction shown includes at least one member featured in Axial’s 2026 Industrials Top 50.

Insights From The Top Dealmakers

We asked deal professionals whose firms are featured on this list to share insights on the general industry landscape, valuation expectations, the biggest challenges and opportunities shaping the industrials market today, and activity across key sub-sectors, including:

• Aerospace & Defense
• Chemicals
• Construction & Engineering
• Electrical Equipment & Components
• Energy
• HVAC
• Industrial Technology
• Machinery & Equipment
• Metals & Mining

Sector Activity & Valuations

Industrials Deal Activity

Survey responses indicate that deal activity in the industrials sector remains concentrated in sectors tied to essential services, infrastructure, and electrification trends. HVAC led all responses by a wide margin, followed by Construction & Engineering, Electrical Equipment, and Machinery & Equipment. Energy and Aerospace & Defense also ranked prominently, reflecting continued interest in businesses benefiting from infrastructure investment, manufacturing demand, and government spending trends.

At the sub-sector level, respondents most frequently pointed to data center build-outs, power infrastructure, electrical contracting, and residential service trades. HVAC, plumbing, mechanical services, facility services, and preventative maintenance businesses were repeatedly cited as active areas of the market, alongside automation, aerospace and defense manufacturing, and other mission-critical industrial services.

Industrials Sector Multiples

Highest Multiples

HVAC: 5x–13x EBITDA, with data center cooling specialists trading higher

HVAC multiples carry the widest spread of any sector this year, with respondents consistently pointing to revenue mix and end-market exposure as the primary valuation drivers. Rob Chepak of TREP Advisors anchors the typical range at 5x to 9x adjusted EBITDA, noting that “service and maintenance heavy beats installation and new construction every time.” Josh Gladtke of Good Hope Advisors similarly cited service mix as the biggest determinant of valuation, particularly for companies with maintenance-heavy revenue profiles.

The highest valuations within the category appear concentrated in specialized niches tied to infrastructure and AI-related demand. Scott Mitchell of SDR Ventures cited commercial HVAC maintenance businesses trading at 10–15x, while data center cooling specialists can reach 12–20x multiples.

Not every respondent agreed that double-digit outcomes are becoming commonplace. In smaller HVAC businesses, John Murray III of Sligo Strategies noted that “everyone shoots for that 10x but just not happening lately it seems,” adding that “companies asking 10x usually trade for 8x.” 

Aerospace & Defense: 8x–12x EBITDA, driven by global defense spending

Those who named A&D as the top multiple sub-sector pointed to one primary theme: accelerated defense spending. Joe Bieshelt of The Venture North Group sees multiples moving above the 10x range, attributing the premium to global geopolitical instability and an “overt posture of the U.S. to invest further in large defense projects.” Michael Schuster of Cross Keys Capital placed quality LMM defense businesses at “high single-digit multiples,” while Keith Wegen of Flatirons Capital Advisors anchored the floor at 8x+, citing the broader macro environment.

Industrial Technology: 8x–12x EBITDA for niche manufacturers

Industrial Technology pulled 12.9% of the highest multiples vote, anchored by niche domestic manufacturers serving technology end markets. Pete Phillips of Madison Street Capital cited 10–12x multiples for that profile, reflecting steady buyer appetite for differentiated manufacturers tied to long-term technology demand.

Lowest Multiples

Metals & Mining: under 5x EBITDA, pressured by trade policy uncertainty

Metals & Mining drew the lowest multiple vote from 30.8% of respondents. Scott Mitchell of SDR Ventures pegged the range at under 5x, attributing the discount to “choppiness of market due to trade policy uncertainty.”

Construction & Engineering: 3x–6x EBITDA, dragged down by cyclicality

For C&E businesses, surveyed members most frequently pointed to project-based revenue streams and lower forward visibility as the primary factors weighing on valuations. Josh Gladtke of Good Hope Advisors said average multiples in the space are 4–5x, describing the sector as “very project specific, cyclical industries with low visibility compared to service-based industries.” Without a recurring revenue mix, he added, “these design and build businesses trade at lower multiples.” See the table below for construction comparables from executed LOIs on the Axial platform.

Source – Axial comparables tool

Expectations for the Next 12 Months

Sentiment among surveyed industrials dealmakers appears cautiously optimistic heading into the next 12 months. More than 70% of respondents expect both overall deal flow and closed deal volume to increase, while only a small minority anticipate a decline in activity. Views on valuations were somewhat more balanced, with most respondents expecting multiples to remain steady and 40.6% forecasting higher valuations. Overall, the results point to ongoing confidence in transaction activity across the sector, even as buyers remain disciplined on pricing and underwriting.

Deal Flow Outlook

Where do dealmakers see industrials deal flow heading in the next 12 months?

→ Track lower middle market deal activity, valuation trends, and sector performance on Axial’s Deal Flow Intelligence Dashboard.

Valuations Outlook

Where do dealmakers see industrials valuations heading in the next 12 months?

Closed Deal Outlook

Where do dealmakers see industrials closed deal volume heading in the next 12 months?

Opportunities & Challenges

Survey responses revealed a market focused on a relatively concentrated set of themes across both opportunities and challenges. On the opportunity side, dealmakers most frequently highlighted power infrastructure, electrification, AI-related data center demand, and recurring-revenue industrial services businesses. At the same time, respondents pointed to labor availability, rising input and energy costs, and increased buyer scrutiny around earnings quality and revenue visibility as some of the most persistent challenges shaping the industrials landscape today.

Where Dealmakers See the Biggest Opportunities Right Now

Power Infrastructure, Electrification & Data Center Buildouts

Recurring-Revenue Industrial Services

Aerospace, Defense & Industrial Policy

The Biggest Challenges Facing Industrials Right Now

Labor Availability & Skilled Workforce Shortages

Commodity Costs, Energy Prices & Supply Chain Pressure

Revenue Visibility, Earnings Quality & Buyer Scrutiny

Final Thoughts

The 2026 outlook is defined by concentration and discipline. Survey responses reflected continued activity in HVAC, power infrastructure, and data-center-adjacent businesses, alongside premium valuations for recurring-revenue industrial services and aerospace & defense companies. At the same time, respondents consistently emphasized buyer focus on revenue quality, labor stability, and operational visibility. The industrial businesses best positioned in the year ahead appear to be those that can demonstrate recurring revenue, a stable, skilled workforce, and clean financial reporting.

Methodology

Our Top 50 industrials list was generated based on a weighted formula leveraging four key metrics:

• The number of industrials deals brought to market via Axial (sell-side)
• The level of interest those deals generated from Axial’s buyside member base
• The number of specific industrial-focused investment mandates created in the platform (buyside)
• The number of industrials deals that progressed through the deal funnel achieving a signed NDA, shared CIM, received IOI, received LOI, executed LOI, or successfully consummated transaction (buyside & sell-side).

Survey insights are drawn from Axial’s 2026 Industrials M&A Outlook survey, conducted in May 2026. The respondent pool consisted of M&A advisors, investment bankers, and investors, all of whom are members of this year’s ranked list.

Subscribe to Middle Market Review