Private Equity Exit Momentum Builds in the Building Products Sector

BGL’s Building Products investment banking team anticipates 2026 as a growth year for building products M&A with transaction volume outpacing 2025 levels, in line with the broader market where the capital markets have continued to show resilience, particularly for high-quality companies, and capital for deal making remains robust.

Key reasons include:

• Lower interest rates, greater clarity around the tariff environment, and steady economic growth should support confidence and a more active M&A environment.
• There is pent-up demand from buyers and sellers.
• Material progress on housing market reforms should serve to bolster much needed new construction with additional mortgage rate relief providing the motivation to move buyers and sellers off the sidelines, thereby strengthening the housing outlook.

Private equity will become more active sellers in the market in the coming months driving deal flow. While an analysis of holdings reveals a strong track record of investment activity in the building products space with 244 companies currently held in portfolios, it also shows more than 40% of the companies have an average hold period exceeding five years—assets that will eventually need to be monetized to return capital to limited partners.

There’s an expectation that once the housing market begins to show early signs of a recovery, sponsors will rush to bring these businesses to market, and it will result in a surge of transaction activity. While onditions for stronger building products M&A are still in the process of materializing, with additional clarity on the market, we remain highly confident in the long-term thesis for investment in the building products sector.

Led by Andrew K. Petryk,  BGL’s Building Products investment banking team is highly experienced in the residential, commercial construction, and infrastructure segments. We have successfully completed transactions across a wide range of end markets, from basic building materials such as aggregates, lumber, and pavers and pre-cast products, to complex fenestration extrusions, glass fabrications, curtain wall, and highly-engineered specialty coatings. Our expertise also extends to key interior and exterior products, including windows and doors, flooring, cabinetry, and other essential building components.