Industry Reports

Q1 2014
The recreational products industry experienced robust M&A activity in 2013 with 47 deals reported for the year. This represented over 20% growth from 2012 and the industry posted its third consecutive year of increasing activity. The 2013 transactions included companies of all sizes and representing a wide variety of recreational activities. Both corporate and private equity buyers were active, as many employed a buy vs. build strategy in order to quickly gain access to growing niches or well-known brands.
Q4 2013
The military training & simulation market has recorded several mergers and acquisitions this year, despite continued uncertainty in the market caused by sequestration. Most diversified defense contractors now have a company, division, or group focused on training & simulation and these entities continue to seek strategic, add‐on acquisitions. There are also several large companies that specialize only in training & simulation, and many of these are seeking acquisitions as well, including targets in new end‐user markets and applications.
Q4 2013
M&A activity in the electronic components industry has remained steady since 2009, but activity lags pre‐recession levels. As of October 31, there have been 52 transactions closed in 2013. In a positive indication of industry activity, Koch Industries announced the acquisition of Molex in early September at a 30%+ premium to the Company’s pre‐ announcement share price.
Q4 2013
M&A activity in the industrial distribution industry lags 2012 levels, with 65 reported transactions through the end of September. Activity in the sector remains high, however, primarily driven by aggressive strategic buyers, which outnumber private equity buyers by about nine‐to‐one.
Q4 2013
The military communications industry continues to experience a healthy level of M&A activity and could be poised for a new wave of mergers and acquisitions. Such consolidation is typical during periods of significant cuts in defense spending and often includes both middle‐market targets as well as transformative transactions.
Q4 2013
The preK‐12 education space has garnered much attention lately, as school administrators, teachers and parents all look for ways to improve outcomes at a lower cost. Meanwhile, private companies have been tasked with providing the tools, products and services to substantially upgrade the quality of education in the U.S.
Q4 2013
The staffing industry has experienced a particularly active M&A market thus far in 2013, reflecting an improving economy and a healthy operating environment for many staffing businesses. Capstone’s research indicates that 89 transactions were completed in the industry through mid‐September, suggesting M&A activity in the sector is on‐track to substantially out‐perform recent years.
Q3 2013
With technology playing an important role at the core of all industries, players in the SaaS & Cloud computing  space continue to reshape the M&A landscape in the middle market. The importance of effective data storage and analysis, integrated business services, and a connected workforce cannot be understated in today’s business environment and has solidified software defined businesses as appetizing targets, as well as deal makers, for strategic and financial partners. 
Q3 2013
Merger and acquisition activity in the juvenile products industry is accelerating, as the sector continues to benefit from an increase in consumer spending and a general improvement in the economy. M&A activity was robust in 2012, during which 29 transactions were closed in the industry. The positive trend continues in 2013, with 25 transactions reported closed year-to-date. 
Q3 2013
The staffing industry has experienced an active M&A market through mid-August 2013 as a result of an improving economy and a robust operating environment for staffing businesses. Capstone’s research indicates that 86 staffing transactions were completed through mid-August, indicating M&A in the sector is on-track to substantially out-perform recent years.

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