Darius Adamczyk, the chief executive officer of Honeywell International Inc., is running out of excuses not to make a splash in M&A.
Adamczyk, who has been CEO since 2017, has talked for a while about Honeywell’s large pipeline of potential acquisitions and how he wants to prioritize doing deals over buying back stock. But he usually quickly countered that with the argument that valuations were off the charts. And he was right — at the time. That long period of elevated company values is coming to an end, of course, with the painful 14% decline in the S&P 500 Index this year. Even the stickier valuations of companies owned by private equity will come down, especially as cheap money dries up with rising interest rates.