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Exit and Growth Strategies for Middle Market Businesses

Archive for the ‘Industry Focus’ Category

Spring 2021 | M&A Report In The Transport, Logistics and Supply Chain Industry Sector

By Peter Heydenrych | Jun 24, 2021

The report below gives a good overview of the Spring 2021 M&A activity in the Transport, Logistics and Supply Chain Industry Sector. The Logistics Market is estimated to grow by USD 77.28 billion, progressing at a CAGR of almost 2% during 2021-2025 as per research published by Technavio. The industry had a decline in activity because of Covid 19, with numerous travel restrictions, nightly curfews, border closures, and flight cancellations imposed by various countries.

The Suez Canal blockage in March 2021, happened due to grounding of the container ship Ever Given, further escalated the impact. The shipping journal Lloyd’s List estimated that goods worth $9.6 billion pass through the canal every day. The blockage delayed a range of parts and raw materials for European products such as cotton from India for clothes, petroleum from the Middle East for plastics, and auto parts from China. The impact on global supply chains is expected to last for several months.

Posted by Peter Heydenrych.

Read the Entire Spring 2021 Transport, Logistics and Supply Chain Report Here


Spring 2021 | M&A Report In The Technology, Media and Telecom Industry Sector

By Dan Vermeire | Jun 24, 2021

The report below gives a good overview of the Spring 2021 M&A activity in the Technology, Media and Telecom Industry Sector. The pandemic has ushered in a new reliance on tech, connectivity, and e-commerce. While many industries have been severely affected by the crisis, for the Technology, Media and Telecom sector (TMT) the economic impact has been largely neutral, or even positive for some industry segments.

With surges in online gaming, video streaming, mobile data consumption, remote working models, voice traffic, and residential broadband; the industry saw companies make several operational improvements in network infrastructures to cope with increased technological demands. The pandemic has shifted the spending toward resources that support digital methods of workforce collaboration, sales and customer experience delivery. The big data technology and rising number of connected devices across enterprises are increasing the demand for IT service management and information security management platform.

Posted by Dan Vermeire.

Read the Entire Spring 2021 Technology, Media and Telecom Report Here


Spring 2021 | M&A Report In The Engineering & Construction Industry Sector

By Dean Durbin | Jun 22, 2021

The report below gives a good overview of the Spring 2021 M&A activity in the Engineering & Construction Industry Sector. The pandemic made its presence felt cross the engineering and construction market in 2020. This caused the Associated Builders and Contractors’ Construction Confidence Index (CCI) to plummet to 38.1. In a few short months during 2020, the industry lost $60.9 billion in GDP and total jobs decreased to roughly 6.5 million, effectively wiping out two years of GDP gains and four years of job gains. However, by June the CCI rose to 55.1, indicating expansion in sales.
The global construction market data from the Business Research Company’s latest research showed that the market is expected to grow at CAGR of 7.5% from 2021 and reach $15 trillion by 2023. The top ten players constitute about 4.7% of the market. The possible reason for this is that there are large number of small players in E&C industry who cater to customers which are closer to their locations. Despite the impacts due to pandemic, there are reasons to be optimistic for the industry. The industry has applied learnings from the 2008 recession and is positioned to make the best out of 2021.

Posted by Dean C. Durbin, PE, MBA.

Read the Entire Spring 2021 Engineering and Construction Report Here


Spring 2021 | M&A Report In The Business Services Industry Sector

By Brad Purifoy | Jun 22, 2021

The report below gives a good overview of the Spring 2021 M&A activity in the Business Services Industry Sector.
The global demand for the business services reached an all-time high in the first quarter of 2021 as per research published by Information Services Group. The Business Services industry is poised for faster growth in 2021 as the economy begins to recover from the pandemic and enterprises continue to make digital transformation. The global annual contract value (ACV) in the first quarter of 2021, which is a measure of outsourced contracts, reached a record of $17.1 billion, which is up by 11% over 2020 and up by 4% from the fourth quarter of 2020. Service providers are focused on meeting needs of the customer by focusing on cloud modernization, cost optimization, and helping customers create resilient and agile operations along with personalized omnichannel experiences.

The cloud-based as-a-service market increased by 15%, to a record $9.9 billion, in the first quarter of 2021, but growth decelerated from the fourth quarter of 2020, when it was up 26% year over year. Managed services ACV, reached $7.2 billion in the first quarter of 2021, up 7% year over year, due to strong growth in Europe. Infrastructure-as-a-service (IaaS) generated $7.2 billion of ACV, up 18% versus year over year and Software-as-a-service (SaaS) generated $2.7 billion of ACV, up 7% year over year. BPO ACV, increased 43% from the prior year, to $1.4 billion.

Posted by Brad Purifoy.

Read the Entire Spring 2021 Business Services Report Here


Spring 2021 | M&A Report In The Metal Fabrication Industry Sector

By Jim Zipursky | Jun 16, 2021

The report below gives a good overview of the Spring 2021 M&A activity in the Metal Fabrication Industry Sector. The global market for metal fabrication services is estimated at US$3.8 Billion in the year 2020 and is projected to reach a revised size of $4.3 Billion by 2027, growing at a CAGR of 2% over the period 2020-2027. China, the world second largest economy is forecasted to reach a market size of $676.5 million in the year 2027 trailing a CAGR of 3.1 % through 2027. The other notable geographical markets are Japan and Canada, each of these markets are forecasted to grow at 1.4% and 1.6% respectively over the period 2020-2027.

Moreover, within Europe, Germany is forecasted to grow at approximately at 1.6% CAGR while the rest of the European market will reach to $676.5 million by the year 2027. The growing demand for vehicles production and lightweight materials are the key contributing factors for the metal fabrication industry’s growth. Further, the rise in the sales of the hybrid and electric vehicles and global recognition of the hydroforming techniques has extended the opportunities in the Metal Fabrication market.

Posted by Jim Zipursky.

Read the Entire Spring 2021 Metal Fabrication Report Here


Spring 2021 | M&A Report In The Energy Industry Sector

By Roy Graham | Jun 15, 2021

The report below gives a good overview of the Spring 2021 M&A activity in the Energy Industry Sector. The Energy industry is poised for faster growth in 2021 and the global demand is set to increase by 4.6% offsetting the 4% contraction in 2020 as per research published by IEA. Almost 70% of the projected increase in global energy demand is in emerging markets and developing economies, where demand is set to rise to 3.4% above 2019 levels. Energy use in advanced economies will be 3% below pre-Covid levels according to IEA. Third waves of the pandemic continue to extend the restrictions on movement and global energy demand has been low. But stimulus packages and vaccine rollouts are boosting the outlook for economic growth.

Posted by Roy Graham.

Read the Entire Spring 2021 Energy Report Here


M&A Quarterly News In The Plastics and Rubber Industry Sector

By Jim Zipursky | Mar 17, 2020

The report below gives a good overview of the first quarter M&A activity in the Plastics and Rubber Industry Sector. M&A activity for North American based target companies in the Plastics and Rubber sector for Q4 2019 included 24 closed deals, according to data published by industry data tracker FactSet.

One of the notable lower middle market transactions closed in November when Tank Holdings Corp, a portfolio company of Olympus Advisors LLC, acquired Chem-Tainer Industries, Inc., doing business as Todd Enterprises, for an undisclosed amount. Olympus Partners is a private equity and venture capital firm. Chem-Tainer Industries engages in manufacturing plastic tanks. The company’s products include open top, water, bulk storage, split containment and septic tanks. Chem-Tainer Industries is headquartered in West Babylon, NY.

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M&A Quarterly News In The Consumer Retail Industry Sector

By Joe Sands | Mar 16, 2020

The report below gives a good overview of the first quarter M&A activity in the Consumer Retail Industry Sector. M&A activity for North American based target companies in the Consumer and Retail sector for Q4 2019 included 149 closed deals, according to data published by industry data tracker FactSet.

One of the notable lower middle market transactions was announced in November when RV Retailer LLC, a portfolio company of Redwood Capital Investments LLC, acquired Ocean Grove RV Sales, Inc. of St Augustine for an undisclosed amount. The acquisition would enhance and expand the business portfolio of RV Retailer in Florida. Ocean Grove RV Sales is located in Florida and retails new and used recreational vehicles.

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M&A Quarterly News In The Transport, Logistics and Supply Chain Industry Sector

By Peter Heydenrych | Mar 05, 2020

The report below gives a good overview of the first quarter M&A activity in the Transport, Logistics and Supply Chain Industry Sector. M&A activity for North American based target companies in Transportation and Logistics sector for Q4 2019 included 49 closed deals, according to data published by industry data tracker FactSet.

One of the notable lower middle market transactions was announced in December when Franchise Group, Inc. acquired American Freight of Ohio, Inc., a portfolio company of The Jordan Co LP, for US$450 million in cash, subject to certain adjustments. Franchise Group, Inc. is a holding company. American Freight Furniture & Mattress is a warehouse-style furniture store that specializes in furniture obtained through dealer cancellations, factory closeouts, retail chain buyouts, & wholesale liquidations.

There was a significant plunge in cargo volumes in February that could get even worse in the coming months if the coronavirus disease 2019 (COVID-19) worsens and spreads further. The ports of Los Angeles and Long Beach are forecasting a 12 to 15 percent decline in container volume in the first quarter as carriers continue to cancel sailings in the trans-Pacific.

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M&A Quarterly News In The Energy Industry Sector

By Roy Graham | Mar 02, 2020

The report below gives a good overview of the first quarter M&A activity in the Energy Industry Sector. M&A activity for North American based target companies in the Energy sector for Q4 2019 included 75 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions in the sector was announced in November when OMOG JV LLC, a joint venture of Rattler Midstream LP and Oryx Midstream Services LLC, acquired Reliance Gathering LLC, a portfolio company of Metalmark Capital LLC, for US$356 million in cash. Reliance Gathering is a crude oil gathering affiliate of Permian Basin-focused Reliance Energy. Reliance is a private Midland based oil and gas company focused on developing upstream and midstream assets. The Company has over 100,000 net acres in the Permian Basin, including approximately 40,000 net acres in the prolific Northern Midland Basin.

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