cascadia connect先进制造与工业技术会议2024回顾

Cascadia Capital was pleased to host the Advanced Manufacturing & Industrial TechnologyConferenceFebruary 7th & 8th at the Casa Del Mar Hotel in Santa Monica, CA. We had approximately 180 attendees that featured over 40 Companies in the Advanced Manufacturing &Industrial Technology ecosystem.The event showcased 8 panels, 8 company presentations, 5 breakfastspeakers, a keynote and an address by 51Vets.There were also meals, two receptions, 150+ one-on-onesmeetings and numerous networking opportunities. Planning has already started for our 2025 event, so please stay tuned! Broad Themes from the Conference •A combination of global instability, broken supply chains, new technologies, and a more pro-active governmentpolicy is driving reshoring and a robust U.S. manufacturing sector •Data suggests this will remain strong at least for the next decade •The conference featured in-depth discussions on the latest advancements and applications in additivemanufacturing, materials science, other innovative manufacturingtechnologies, and automation.A broad set ofpanelists discussedhow these innovations contributed to accelerating product development cycles, reducingmanufacturing costs, andenabling on-demand production of customized components •New technologies and materials need to have a specific use case to accelerate adoption •Finding skilled labor is a challenge across the ecosystem and it is important to be creative in finding andretaining talent which may include more flexible work schedules and/or more technology to not only driveefficiencies but attract the younger generation •Turn-over at OEM customers makes it much harder to develop longer-term relationships with purchasingcontacts than it used to be •While all Industriesare benefitting, Aerospace, Space and Defense are standouts with more people flying,global tensions driving defense budgets, and both commercial and government spending on Space at recordlevels and only expected to continue •Advanced manufacturing is witnessing a seamless integration of artificial intelligence (AI) and robotics toenhance efficiency, precision, and flexibility in industrial processes •In 2024, the advanced manufacturing industry is poised for strong deal activity, driven by a convergence offactors such as technological advancements, market demand for innovative solutions, and more favorableeconomic conditions Breakfast Speaker Highlights Introduction & Overview •Managing Director and Head of the Industry Practice,KevinFrisch, gave a presentation on theAdvancedManufacturing &Industry 4.0 Market Update: •U.S. Manufacturing Trendscontinue to be strongacrosskey data indicators including the Federal Reserve ProductionIndex at a high of 102.7 and high level of manufacturingemployment •Several converging trends drivingthis such as securityconcerns, demand for localized supply chains and newtechnologies such as digital manufacturing and automationdriving efficiencies •Market sentiment in M&A is much strongertoday than ayear ago with signs of a strong back half of 2024 expected •WithinourecosystemweseeparticularstrengthintheAerospace,SpaceandDefenseMarkets •Allofthesetrendsaredrivingstrongstockperformanceacrosstheecosystem Stock Performance By Sector Advanced Manufacturing &Industrial Technology:Conference Recap Aerospace & Defense M&A Overview M&A Activity Overview •M&A transactions showed a slight decrease in4Q 2023, with 53 transactions compared to 58transactions in 4Q 2022, representing a 9%year over year decrease in deal volume •Overall, deals in year 2023 stood at 206,compared to previous year’s 215 transactions •The valuation multiples in M&A transactionshave increased due to the growing number oftransactions within high-tech and high-growthsubsectors in recent years. Capital Markets •After a tough 2023, financing markets are beginning toopen up,which appears to be reflective of rates beginning to fall and moreengagement by capital providers•Improving sentiment along with excess dry powder by funds shouldhelp drive more robust activity in 2024•Overall volume may be down (see below), but funds that cross thefinish line are larger than ever as investors look to capture double-digit senior secured returns on bigger base rates that are expectedto hang around for some time Advanced Manufacturing &Industrial Technology:Conference Recap Insurance Perspective •Five Insurance Trends for Derisking M&A: •Transactional Insurance Coverages: Reps & Warrants, Tailcoverage, cyber insurance•Engaging in insurance due diligence at Letter of Intent stage•Detailed transition timeline•Understanding the liabilities that your organization is bringing on•Key-man insurance Accounting Perspective •Deal Trends: •More creative deal structures, more purchase price adjustments,valuation gaps, more net working capital negotiations•More intense due diligence–Quality of Earning’s are anexpectation•Rep’s & warranties insurance (40-45%), more escrows (due tostate and local tax) Le