In a recent article on the Axial Forum, author Karen Sibayan cites analysis from SDR Ventures and other industry experts and features commentary from SDR’s Chris Bouck to help put numerous 2016 M&A sector outlooks into perspective.
Sibayan identifies technology, healthcare, manufacturing and telecom as industries that are “thriving in this prolific deal environment.” However, the massive M&A deals that occurred within the technology industry in 2015 likely means that smaller, middle-market deals will happen this year, says Bouck.
Both the manufacturing and healthcare industries saw strong growth in M&A activity in 2015, which should continue into 2016. “One of the main driving factors for this growth was the advancements made in medical technology over the past year,” Bouck says. “As medical technology continues to advance, medical equipment companies are making transactions in order to fill gaps in their portfolio of products offered.”
The outlook is less positive for the oil and gas and retail sectors; however, opportunities are still available. Online retailers, Sibayan reports, will continue to see growth over storefront retailers. And with the low price of oil, “there should be plenty of buyers who will be looking to get a deal,” Bouck says.
Both the food and beverage and pet foods industries will continue to be influenced by consumers’ desire for healthier, natural and ethically sourced ingredients. Bouck says companies that occupy this food space “will continue to trade for premium valuations with larger strategic buyers attempting to stay on trend and acquire strong brands that can be scaled.”
Read more 2016 sector outlooks in Sibayan’s full article.