Industry Reports

Published on: 08/22/2013
Merger and acquisition activity in the pet and animal care industry remained strong in the first half of 2013, with 21 announced transactions involving U.S. targets. If deal activity continues in the last six months of 2013, the number of announced transactions will exceed announcements in 2012 and 2011 of 40 and 37, respectively. This high level of activity reflects overall strong M&A fundamentals and continued buyer interest in the pet and animal care sector. As a result of these drivers, Capstone expects a strong market for M&A in the sector for the remainder of 2013.
Published on: 08/12/2013
With the nation’s attention focused on reducing government spending and sequestration, one would expect mergers & acquisitions in the government contracting space to come to a standstill. But such is not the case, with the number of acquisitions announced thus far in 2013 totaling more than 320.
Published on: 07/29/2013
Merger and acquisition activity in the Environmental, Health & Safety industry continued strong in the first half of 2013, with the number of completed transactions totaling 38 through June. Transactions continue to be fueled by low interest rates and an improving economic environment, with financial sponsors and strategic acquirers alike purchasing companies in the space at consistently strong valuations.
Published on: 07/11/2013
The climate for mergers and acquisitions in the preK‐12 education market remains healthy, as several forces converge to boost activity in the space. On the one hand, the size of the market and the important role that private companies play in the education formula make for an attractive investment thesis for buyers. In fact, a fundamental change has occurred in the preK‐12 sector, as the need to improve education quality has overtaken demographics as the key growth driver.
Published on: 07/09/2013
The recreational products industry continues to be a robust environment for mergers and acquisitions. The industry is highly fragmented and comprised of numerous, small‐scale entrepreneurial brands, presenting a significant opportunity for consolidation. As consumers become more educated about product features and benefits, and how they relate to price, the need for product innovation has become vital to differentiate from the competition.
Published on: 07/02/2013
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: 07/01/2013
The explosion and rapid sophistication of the mobile and wireless market has changed the way people live and work across the globe. As the industry continues to grow, M&A activity has helped organizations consolidate expertise, work new solutions into established portfolios, and explore significant market growth opportunities. Businesses operating in this space are well positioned as potential competitive differentiators for companies both inside and outside the mobile and wireless industry.  
Published on: 06/04/2013
Mergers & acquisitions in the education technology industry remained elevated in 2012, with an estimated 48 transactions completed in the sector. Through mid‐May of 2013, there have been 21 transactions closed, indicating the industry is on‐track for another strong showing this year. Target companies include both large and established businesses as well as those in the early stages of development.
Published on: 05/31/2013
Reflective of the M&A environment in general, a flurry of acquisitions were reported in the medical device outsourcing industry in the final quarter of 2012, as buyers and sellers worked to complete transactions in advance of the capital gains tax rate increase that went into effect in early 2013. Following the spike, middle market M&A activity has tempered a bit thus far in 2013, although transactions are still being completed in the medical device outsourcing sector.
Published on: 05/30/2013
Merger & acquisition activity in the personal care sector followed a pattern similar to many other industries, with the number of transactions rising to a peak in 2007, then declining during the economic recession of 2008 and 2009. Since then, improved economic conditions and increased financial liquidity have resulted in investors targeting this industry once again. M&A activity rebounded substantially in 2010, and the industry has since posted year‐over‐year gains, with the number of transactions in the U.S. topping 100, a new record, in 2012.