Industry Reports

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.
Published on: 02/06/2013
The medical device outsourcing market, because of its fragmented nature and renewed industry focus on efficiency, is ripe for mergers and acquisitions. In fact, we expect that some of the very issues negatively affecting medical device OEMs could be a contributing factor to more mergers and acquisitions in this space.
Published on: 02/06/2013
Merger and acquisition activity in the Juvenile Products industry remained steady in 2012, as the sector continued to benefit from an increase in consumer spending and improvement in the economy. As the environment grew more optimistic, corporate buyers in the industry looked to strategic acquisitions for growth opportunities in the form of new products and brands, new target markets and expanded geographic territories. Private equity firms also continued their activity in the industry, making platform and add‐on acquisitions of companies with strong brands and innovative products.
Published on: 01/03/2013
The recreational products industry lends itself to an active environment for mergers and acquisitions. Many of the industry’s product categories feature a few notable firms. At the same time, middle‐market companies account for the bulk of industry revenues, and the industry is highly fragmented and competitive. Start‐ups are also fairly common, as demand for product innovations and appealing niche brands develops.
Published on: 11/15/2012
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. 
Published on: 11/15/2012
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.
Published on: 11/01/2012
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.
Published on: 10/31/2012
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.