PERSONAL CARE PRODUCTS & SERVICES Q1 2015 CONTACTS MERGERS & ACQUISITIONS M&A activity in the personal care industry was robust in 2014, with 81 transactions reported for Tracy Patch the year, a preliminary figure that will surely rise as additional transactions are recorded for the Vice President year. The elevated level of activity in the industry is presenting a unique opportunity for private (949) 460-6432 business owners looking to exit their business or team with a growth partner. In fact, as
[email protected] valuations are generally on an upswing, many sellers have more options today than in the past five years to extract value from their companies. David Bench Managing Director Personal Care Industry M&A Transactions (949) 460-6431 120
[email protected] 100 100 94 85 81 Daniel Schultz 77 80 73 75 Director of Business Development 70 69 67 (617) 619-3368 60
[email protected] 40 20 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Sources: Capital IQ, Capstone Partners LLC research Much of the recent activity in the segment involves middle market companies. In an industry that depends on new product development and introductions, these target companies can offer buyers new and innovative products and services, as well as access to growing market niches. Among buyers, synergy is the new black, and the potential for synergies vis-à-vis acquisitions can help strategic buyers justify premium valuations. At the same time, private equity buyers remain very active in the industry, backed by readily available financing, low interest rates, strong BOSTON fundraising and plenty of cash to invest.