Industry Reports

Published on: 05/08/2013
The industrial distribution market segment is comprised of companies that provide maintenance, repair and operations (“MRO”) supplies, tools, equipment and machinery to various industries including original equipment manufacturers (“OEM”), oil & gas, food & beverage, and aerospace & defense companies, among others. For the purposes of this report, Capstone has excluded distributors that primarily market to the construction/building and agriculture industries.
Published on: 04/26/2013
Merger and acquisition activity in the Environmental, Health & Safety industry continued to gain momentum in 2012, with the number of completed transactions totaling 79, the highest figure in recent years, including the robust pre‐recession era. The elevated activity experienced in today’s market can be attributed to several trends, including both macro‐economic and industry‐specific developments that are underpinning transactions.
Published on: 04/12/2013
Facing an era of little or no organic growth, government contractors are eyeing mergers and acquisitions with renewed interest, as perhaps one of the only means to preserve revenues and profits. As a result, the industry could soon see a new wave of transactions. Such consolidation is typical during periods of significant cuts in government spending as contractors search for ways to expedite innovation, add new products or break through to new customers and markets; in other words, build competitive advantages.
Published on: 04/01/2013
If history repeats itself, as it usually does, the Military Training & Simulation industry is 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. While the current environment remains clouded with questions as to exactly when and how sequestration cuts will be carried out, as the fog clears and the future becomes more certain, M&A activity in the space is expected to accelerate.
Published on: 03/31/2013
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. 
Published on: 03/15/2013
Merger and acquisition activity in the precision metal manufacturing (“PMM”) industry ended on a high note in 2012. The number of industry transactions, which had been rising steadily since the economic recovery began in 2010, continued that trend in 2012. This included a flurry of activity in the fourth quarter, resulting in a total of 71 transactions for the year, a 39% gain over the 2011 figure. As a result, 2012 marked the first time that M&A activity in the industry exceeded pre‐recession levels.
Published on: 03/07/2013
Merger and acquisition activity in the pet and animal care industry remained strong in 2012 with 37 announced transactions involving U.S. targets. This activity level is consistent with the 37 and 39 announcements in 2011 and 2010, respectively. The high level of M&A activity is due to strong fundamentals in the overall M&A market as well as continued interest by both strategic buyers and private equity firms in the pet and animal care sector. We expect these market drivers to continue, which should make 2013 another good year for M&A in the pet & animal care sector.
Published on: 02/25/2013
M&A activity in the water and related equipment and services sector remained brisk in 2012, despite only mild gains in the industry. In fact, the industry has been expanding slowly for several years now, registering 1‐2% annual growth since the recession. Yet, water and water‐related businesses continue to be an investment darling, and for good reason: buyers and financiers expect break‐through growth in the sector in the coming years.
Published on: 02/06/2013
The staffing industry experienced a very active M&A atmosphere in 2012, reflective of an improving economy and a healthy operating environment for many staffing businesses. Capstone’s research indicates that 101 transactions were completed in the industry last year, a 16% increase over the number of transactions completed in the prior year, and the third consecutive year of solid M&A performance in the sector.
Published on: 02/06/2013
The outlook for M&A activity in the packaging industry remains positive. Valuations of publicly held packaging companies continue to be healthy, while at the same time the economy is expanding slowly, resulting in steady industry growth. As a result, corporations in the industry are continuing to use mergers and acquisitions as a way to supplement organic growth, build market share and scale, improve margins and accelerate growth.

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