United States

M&A in business products and services will move in step with economy

Q2 2016 business products and services industry spotlight

INSIGHT ARTICLE  | 

Download report

Coming off of a 2015 that saw the business products and services industry experience flat to minimal growth, 2016 appears set to see a continuation of this, as many of the same pressures that impacted the industry last year remain in place. Unlike other sectors, such as health care, technology or consumer, which can experience fundamental industry shifts, the business products and services sector typically follows the overall market growth trajectory. While companies in the above-mentioned sectors that can spot fundamental industry shifts early can position to outperform and generate substantial growth, business products and services businesses aren’t afforded the same luxury, so addressing headwinds early and planning for a slow-growth environment has remained the focus of companies in the space.

Key highlights from the first quarter:

  • Just 835 transactions closed during the first quarter of 2016, representing a decline of 9.5 percent on a quarterly basis and 18 percent relative to the first quarter of 2015. 
  • Private equity (deal value remained flat relative to the fourth quarter of 2016, with $35 billion worth of private equity-backed mergers and acquisitions (M&A) activity closing during the period. Volume did decline, however, with 291 transactions closing during the period, a nearly 10 percent quarter on quarter drop.

Private Equity Subscriptions

Subscribe to Quarterly Industry Spotlights

(* = Required fields)

Contact our professionals

Contact us by phone 800.274.3978 or
submit your questions, comments or proposal requests.



Events / Webcasts

IN-PERSON EVENT

Trends in business development companies 2017

  • May 15, 2017

RECORDED WEBCAST

Accounting and tax updates for private equity funds

  • January 17, 2017

RECORDED WEBCAST

Private equity and the software industry

  • December 14, 2016

RECORDED WEBCAST

M&A: What to expect in 2017

  • November 16, 2016