Industry Reports

Q2 2018
Despite short-term concerns spawning from Toys “R” Us’ September bankruptcy and its more recent liquidation plan, the long-term outlook remains positive for the Juvenile Products industry on the heels of continued revenue growth. According to the US Census Bureau, global retail sales for hobby, toy, and games stores exceeded $19.2 billion in 2017, up from $18.8 billion in 2016.1 Following an impending disruption and redistribution of sales within the toy market, the Juvenile Products industry is well positioned to maintain its recent growth trajectory.
Q2 2018
Through Q1 2018, 15 mergers and acquisitions (M&A) were announced or closed in the Mapping, Modeling & Simulation (MM&S) sector—comparable to Q1 2017 deal activity. Strategic acquirers accounted for 13 transactions, while private equity groups (PEGs) seeking investment opportunities accounted for two transactions. This breakdown is consistent with historic acquisition trends.  Recent M&A activity involving MM&S businesses has been primarily driven by strategic acquirers adding new technological capabilities to differentiate their service offerings.
Q1 2018
With 195 US transactions announced or closed in the Chemicals industry during 2017, volume dipped slightly below the record level from 2016, but surpassed that of 2015.
Q2 2018
The number of announced or closed Assisted Living & Elderly Care mergers and acquisitions (M&A) increased 17.4% year-over-year while the Home Health & Hospice Care segment remained almost unchanged. These highly fragmented segments continue to see consolidation, and 14 buyers drove 36.4% of deal activity (44 deals). These companies sought to diversify geographically and gain dominance in the market through acquisition.
Q1 2018
Growing domestic and international threats to the US have heightened the need for innovative, technologically-advanced public safety solutions. Merger and acquisition (M&A) activity within the industry has echoed these demands and within the last twelve months buyers have often targeted companies with integrated solutions, data analytics, cloud computing and Internet of Things (IoT) technology. Year-to-date (YTD), the average disclosed transaction value has been $362.4 million compared to $232.0 million in all of 2017.
Q1 2018
Following multiple years of record setting merger and acquisition (M&A) levels in the Value-Added Distribution industry, activity remained robust during 2017 as domestic activity surpassed 100 deals for the fourth consecutive year. Reduced activity volume relative to 2016 can be attributed to meticulous vetting processes and buyers’ preference for quality companies with strong cultures and complementary offerings.
Q1 2018
The Security Solutions industry experienced a record level of M&A activity during 2017 with 135 transactions announced or closed. Strategic buyers maintained a stronghold on the marketplace (58.5%) as 15 companies made multiple acquisitions in the space. However, financial buyers increased their share of deals from 32.5% in 2016 to 41.5% in 2017 as the attractiveness of the space lured new investors. For strategic and financial buyers alike, the most attractive M&A targets will have strong leadership including a deep bench of rising, future leaders.
Q1 2018
Capstone has already identified six merger and acquisition (M&A) deals in the Government Information Technology (IT) industry in 2018, suggesting a strong year of M&A activity.  Recent notable deals have included General Dynamics’ acquisition of CSRA (highlighted below), On Assignment’s acquisition of ECS Federal (January, $775.0 million) and the announced merger of DXC Public Sector, Vencore and Keypoint.     
Q1 2018
Building on an impressive year of merger and acquisition (M&A) activity in 2017 for the Payment Processing industry, 2018 is already shaping up to be another monumental year in terms of deal and investment activity.  Through Q1 2018, domestic M&A activity was in line with that of previous years with 26 announced or closed transactions, compared to 27 in both 2016 and 2017.    
Q1 2018
Merger and acquisition (M&A) activity in the Behavioral Healthcare Services industry was robust in 2017 with a 27.6% year-over-year increase in announced or closed transactions.  This growth can be attributed to increased buyer appetite for substance abuse treatment centers.    

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