Listen to this Episode Here:
Uncertainty is fading and M&A activity is heating up in the chemicals and materials industry for 2026. Host Victoria King Meyer speaks with Jon Glapa of Grace Matthews about why the year ahead is shaping up to be strong for dealmaking. They discuss how greater strategic clarity, market stability, and disciplined capital deployment are spurring renewed confidence among buyers and sellers.
- Inside Chemical M&A: What makes a company an attractive target
- Navigating uncertainty and how leaders managed 2025’s volatile market
- Key drivers behind deal valuations and multiples
- Private Equity vs. Strategics: Who’s winning chemical industry deals?
- Preparing your business for future transactions
Killer Quote: “I tend to think of uncertainty as the enemy of M&A. You can navigate through certain dynamics, but when uncertainty increases, it becomes more and more challenging.” – Jon Glapa
Watch The Episode with Jon Glapa of Grace Matthews on Youtube Here:
Chemical M&A Trends for 2026: Insights from Jon Glapa of Grace Matthews
The chemical industry has never been short on complexity, but the past few years have brought challenges and opportunities unlike any before. In this episode of The Chemical Show, Victoria sits down with Jon Glapa, Managing Director and Partner at Grace Matthews, to unpack the current state, and future, of mergers and acquisitions (M&A) in chemicals and materials. Their conversation offers practical perspectives for industry professionals, especially as unpredictability continues to shape dealmaking, strategy, and growth in 2026.
Subscribe To The Chemical Show On Your Favorite Platform
The M&A Landscape: 2025 in Review and Outlook for 2026
A slow start and a volatile mid-year defined M&A activity in 2025, with Jon observing that uncertainty has become the enemy of deals. Multiple factors contributed: COVID-era disruptions, supply chain shortages, inflation, and shifting trade policies, culminating in a climate where both buyers and sellers pressed pause. As Victoria notes, “uncertainty is kind of the kiss of death for deals.”
However, late 2025 brought signs of recovery. Increased confidence and clarity around inflation, financial markets, and interest rates have helped business leaders make more informed decisions. According to Jon, the chemical industry is now operating at a higher level of uncertainty but adapting, which bodes well for increased deal activity in 2026.
Understanding Multiples, Valuation, and Market Behavior
Valuation multiples remain a central talking point for chemical industry professionals. Multiples offer a shorthand for understanding how buyers view value, often centered on EBITDA. Yet, as Jon cautions, the real question is “multiple of what?”—closing EBITDA, synergistic EBITDA, or seller-adjusted metrics. While hard numbers are elusive, transaction levels and multiples remain healthy and consistent with recent years, especially for high-quality businesses, suggesting continued strength in the market.
Different buyer types, private equity and strategics, are approaching acquisitions with distinct priorities. Private equity buyers are focused on manufacturing capital returns and platform growth, while strategics are looking to fill technology gaps, expand portfolios, and drive vertical integration. Both groups, however, are increasingly selective and disciplined. Capital is available, but scrutiny is higher and diligence is deeper, reflecting the maturation of the M&A market.
Regional Dynamics and the Strength of US Markets
While Grace Matthews works globally, their primary base is North America. The US chemical industry is benefiting from several tailwinds, including a favorable cost environment and incentives for manufacturing investment. This has made the US a top destination for buyers, including those from Europe and Asia, where market conditions are less favorable. The underlying strength and resilience of the US market continue to attract attention and investment from abroad.
Mid-Market Challenges: Preparation and Opportunity
Mid-market companies often underestimate the preparation required for successful M&A. As Jon explains, readiness should begin well before an opportunity appears. Building a funnel of targets or buyers shrinks quickly; companies must remain proactive and realistic about the resource demands of dealmaking. Sometimes firms arrive at Grace Matthews with a partner already in mind, based on industry relationships. Others seek guidance on where to begin. Both scenarios highlight the importance of industry expertise and a methodical approach to opportunities.
Leadership Advice: Building Relationships and Optionality
For those new to investment banking, Jon advises a mindset oriented toward learning and continuous improvement, a valuable perspective for both short and long-term careers. For chemical CEOs navigating 2026, his key recommendations, focus on two areas: invest in customer relationships and prepare for future options. Solid, long-tenured partnerships make a business more resilient and attractive to buyers. Meanwhile, keeping a strategic plan and growth initiatives updated creates flexibility and strengthens operational and market value, whether or not a deal is imminent.
In an industry shaped by unpredictability, discipline, preparation, and adaptability are essential. The insights from Victoria and Jon offer a useful roadmap for chemical industry professionals whether preparing for growth, considering a sale, or simply seeking stability amid change. As M&A activity increases in 2026, these strategies may well define the leaders and companies best positioned for success.
About Jon Glapa:
Jon Glapa – Managing Director and Partner at Grace Matthews
Jon is a Managing Director and Partner at Grace Matthews, where he joined in 2011. Jon has experience leading a variety of transactions for clients throughout the chemical and materials value chain, including privately held businesses, large corporations undergoing complex carve-outs, and private equity-backed businesses.
Jon holds a B.A. in Mathematics as well as a Secondary Field degree in Economics from Harvard. Jon received an M.B.A., with honors, from the University of Chicago Booth School of Business. During his time at business school, Jon interned at a Chicago private equity fund.