M&A activity in the North American Industrials sector for Q4 2013 through February 10, 2014 included 946 deals announced or closed according to data provided by S&P Capital IQ. Strong momentum in the period is projected to continue into 2014 according to data published by international consulting firm PriceWaterHouseCoopers. In a sector as broad and imperative to the economy as industrials, improving macroeconomic trends and fundamentals are an indicator of the level of M&A activity. Average debt to EBITDA multiples continue to steadily increase, reaching 4.5x as of November 2013, according to S&P Capital IQ. This, in addition to the availability of cash with attractive terms, provides strategic and private equity buyers with numerous opportunities to recapitalize balance sheets and pursue liquidity events, which drives M&A activity and increases valuations.