Industry Reports

Q4 2012
While many investment banks cover the core infrastructure market – that is the utilities companies themselves – Capstone’s focus is on the equipment and service companies that sell to and support the power generators, water companies, telecommunications providers and transportation infrastructure builders. These supporting companies include thousands of middle‐market businesses that collectively sell a wide variety of goods and services to the infrastructure market in support of repairs, replacements, upgrades and expansion. 
Q4 2012
Capstone defines precision metal manufacturers (“PMMs”) as companies providing value‐ added manufacturing services to produce finished metal components. These services include, but are not limited to, precision machining, grinding, laser cutting‐marking‐ welding, electrical discharge machining, metal injection molding, stamping and surface treatment.
Q4 2012
The Military Training & Simulation industry is adopting a merge‐and‐acquire strategy in response to market changes that include pending troop draw‐downs and defense cuts. As a result, a new round of industry consolidation is expected, similar to that which occurred during the budget cuts of the mid‐1990s. With pressure once again mounting, talk of mergers & acquisitions is heating up, with much of the activity this time centered on middle‐market targets.
Q4 2012
The satellite industry has not just survived, but thrived through the recent downturn in the global economy. Furthermore, healthy conditions are anticipated for the industry for years to come. As a result, this segment and the equipment providers that support it are expected to continue to see a robust level of M&A activity as acquirers move to secure their positions in the industry.
Q4 2012
Education in the U.S. is big business; as a result, the industry represents a perennial investment theme. Driving the growth of education investments is the recognition that public education needs help, and the government cannot solve the complex problem alone. Private businesses are stepping in, offering critical resources to the market including innovation, research & development, capital, scalability and a much‐needed focus on customers.
Q4 2012
The Military Communications industry has experienced a fairly active mergers and acquisitions environment, driven by both strategic and financial buyers who are looking to secure or expand their positions in the communications space, which represents one of the healthiest segments of the defense industry.
Q4 2012
The security solutions industry is enjoying an active M&A market and we are witnessing activity across both the electronic security and personnel security segments. Electronic security is composed of systems that monitor physical environments and includes CCTV and fire alarm surveillance systems. This segment includes companies that install, monitor and maintain such systems. Outsourced personnel security involves the use of persons to guard or protect a particular physical environment, and related services.
Q4 2012
Environmental, Health & Safety has emerged as a perennial investment theme and buyers continue to view the space as an opportunity supported by increasing government regulations and mounting corporate concerns regarding risk and potential liability. As a result, M&A activity in the space continues to build momentum, with new transactions announced weekly. After posting a substantial increase in 2010 and solid activity in 2011, 65 EH&S transactions were completed in the first three quarters of 2012, putting the industry on‐track for a stellar year.
Q3 2012
The Juvenile Products industry has been enjoying a healthy level of M&A activity, with acquirers seeking to build product offerings, capture market share and secure new brands via acquisitions. While both corporate and private equity buyers are active in the space, we note the plethora of private equity groups that are targeting consumer products companies, including those focusing on juvenile products. 
Q3 2012
M&A activity in the staffing industry has been accelerating. Capstone’s research indicates that 54 transactions were completed in the industry through August of this year. On a pro forma basis, together with the host of transactions we see moving to closure during Q4, 2012 should mark the third consecutive year of solid M&A performance for the industry.

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