The number of M&A transactions within the broad world of safety equipment and services continues to hold, and even to climb slightly into 2017. Published predictions today talk more often about “steady activity” and “cautious optimism” – significantly less bullish than the predictions we would have heard a few years ago. The number of really large mega-transactions in the industry, however, took a slight pause for 2016, and appears less likely to climb for 2017.
Our firm is focused on the middle market, which we define as companies with maybe $20 to $200 million in sales volume. In recent months we are still seeing an outstanding count of active buyers, and a still strong recent history for sales of safety product and service companies. Safety regulations continue to be refined, and often today still continue to expand. The potential influence of recent political trends, for strong governmental support to nurture U.S. manufacturers and service providers, is encouraging. Equity funds continue to proliferate, and the cost of borrowing remains low.