As Q4 approaches, the pipeline of companies being readied for sale appears robust. PE Hub has been briefed on 205 companies coming to market year to date, compared with 94 at the same time a year ago. Business services, healthcare services, fintech, industrials, aerospace and defense, and sectors benefiting from the AI buildout promise the most activity.

Justin Abelow, a managing director at Houlihan Lokey, said deal launches are broad-based with few down sectors. Effram Kaplan, co-CEO of Brown Gibbons Lang, noted aerospace and defense, infrastructure, and essential services remain attractive, with AI-derivative sectors generating massive interest.

Recent exits evidence active business services and healthcare segments, including Precision Medicine Group sold by Blackstone to McKesson for a reported $2.25 billion, Outcomes One sold to HIG Capital, Unitex sold to CVC Capital at a $70 million EBITDA valuation, and A1 Garage Door in late-stage discussions to be acquired by KKR at a $2 billion valuation.

Industrials dominate the companies-for-sale pipeline with 15 companies in market, followed by healthcare services (13) and HVAC and commercial business services (11). Manufacturing companies have traded at a median 13.1x EV/EBITDA over the past 12 months, according to SIPA Private Metrics.