Monday, January 18, 2010

2009 Q4 - Industry reviews from McGladrey Capital Markets

McGladrey Capital Markets would like to present our latest Quarterly Industry Reviews. Each of our industry teams has prepared this briefing, which highlights key trends, examines M&A activity, provides industry insight and details current mandates that may be of interest to you or your clients within the following sectors linked below:


Aerospace & Defense
Basic Industries
Chemicals
Consumer Products and Services
Energy
Engineering, Construction and Building Materials
Food & Beverage
Global Financial Services
Government Services
Healthcare
Media, Entertainment & Gaming
Plastics and Advanced Materials
Test, Measurement and Sensors

Tuesday, January 13, 2009

2008 Q4 - Industry reviews from McGladrey Capital Markets

McGladrey Capital Markets would like to present our latest Quarterly Industry Reviews. Each of our industry teams has prepared this briefing, which highlights key trends, examines M&A activity, provides industry insight and details current mandates that may be of interest to you or your clients within the following sectors linked below:

Aerospace & Defense
Basic Industries
Chemicals
Consumer Products & Services
Energy Services
Engineering, Construction and Building Materials
Food & Beverage
Global Financial Services
Government Services
Healthcare
Media, Entertainment and Gaming
Plastics and Advanced Materials
Technology

Thursday, October 9, 2008

Technology Industry Review Q3-2008; McGladrey Capital Markets

Enterprise Software

M&A Activity in the Enterprise Software Industry Heats Up

  • JDA Software Group Inc. announces the acquisition of i2 Technologies Inc., a provider of supply chain management software ($542 million)
  • International Business Machines Corp. announces the acquisition of ILOG SA for its pre-built software components capability ($301 million)
  • Microsoft Corp. announces the acquisition of DATAllegro Inc., a provider of data-warehouse appliances
  • Open Text Corp. acquires a division of Spicer Corp. specializing in file format viewer solutions ($12 million)
  • Oracle Corp. announces the acquisition of Global Knowledge Software LLC, a developer of self-service training automation software

Digital Media

Consolidation in the Digital Media Solutions Industry Continues Its Momentum

  • Vodafone Egypt Telecommunications S.A.E. acquires Sarmady Communications, a provider of Web-based advertising services
  • L-1 Identity Solutions Inc. strengthens its credentialing solutions portfolio through the acquisition of Digimarc Corp. ($306 million)
  • Host.net acquires WV Fiber Inc., a global Internet transit and multiprotocol label switching transport company, for its top clientele
  • The Active Network Inc. acquires T&C Products Inc., a sports-management software developer
  • Intersil Corp. announces the acquisition of D2Audio Inc. for its intelligent digital audio power amplifier capabilities
Read complete report.

Plastics and Advanced Materials Industry Review Q3-2008; McGladrey Capital Markets

Key Trends

Concerns Regarding Bisphenol A


The use of Bisphenol A (BPA) in consumer products is generating varied opinion from industry groups. BPA is used in a variety of products such as shatter-resistant polycarbonate plastic baby bottles and epoxy resin lining in food cans for safety of food from contaminants. Scientific and government bodies around the world have reaffirmed the safety of food-contact products containing BPA. The California Assembly recently rejected a bill that targeted the use of BPA in food contact products for use by children under the age of three.

Mixed Reactions on Plastic Bags Ban

As mentioned in last quarter's review, the ban on plastic bags continues to receive increased attention from all quarters of the industry. Several cities have banned the use of plastic bags outright, whereas others have voiced their opinion against a ban. Manhattan Beach, Calif., with 35,000 residents, became the third U.S. city with a ban on plastic carryout bags. A ban in San Francisco went into effect in November 2007, and a ban in Malibu, Calif., approved in May 2008, goes into effect in two stages, beginning in December. Most recently, Westport, Conn., passed a ban on plastic bags earlier this month that will go into effect in March 2009. Although some cities are getting vocal against the use of plastic bags, legislators in California failed to pass a plastic-bag tax in the recently completed legislative session. The bill required retailers to charge at least 25 cents for plastic bags, starting in July 2011, if they do not achieve a 70 percent bag diversion rate based on use reduction and recycling rates. A series of recommendations from the Ocean Protection Council in California could lead to more bans and taxes on plastics packaging. The report calls for producer responsibility for the take-back of packaging waste, and bans or fees on commonly littered items such as plastic bags and polystyrene containers.

Read complete report.

Recreation & Leisure Industry Review Q3-2008; McGladrey Capital Markets

Key Trends

Consumers Face Headwinds and are Conserving Cash

A number of economic factors are conspiring to impact U.S. consumer spending in the outdoor, sports, recreation and leisure sectors. The U.S. economy continues to reel under pressure from softness in the housing market, the extended credit crisis, failure of financial markets, and a worsening labor market. The one-time effect of the government's stimulus package has fully played out and increasing inflation has eroded Americans' buying power. Faced with a 17-year high consumer price index and a decline in personal income levels, U.S. consumers are running out of ways to sustain their former spending lifestyles. Lower gasoline prices have given consumers some tangible relief, and we are seeing that relief expressed in the various consumer confidence figures. While consumer confidence was at its highest level in five months in August 2008, financial events in September will chip away or reverse the sentiment.

Value to Outperform Luxury

Historical consumer psychology and behavior in times of distress provide valuable lessons to retailers, manufacturers and others supplying the outdoor, sports, recreation and leisure markets. Research indicates that as a crisis intensifies, stress relief plays a bigger role in spending behavior. At the same time, expenditures seen as extravagant will cause consumers stress. The higher the price, the greater the justification required for a purchase. Mass retailers are expecting to see a pickup in fourth quarter performance due to a shift among shoppers toward value, while department stores are likely to be negatively impacted as middle and upper-income households become increasingly vulnerable to economic pressures.

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Media, Entertainment & Gaming Industry Review Q3-2008; McGladrey Capital Markets

Key Trends

Media, Entertainment and Gaming — Recession-Resistant?


The media, entertainment and gaming industries have historically proven to be resilient during periods of economic weakness. During past economic slowdowns, consumers have continued to seek out various forms of entertainment as a means to escape, albeit temporarily, the increased stresses of daily life. With that said, it remains to be seen whether the current economic crisis will broadly and severely impact companies operating in the media, entertainment and gaming sectors or whether the discretionary income levels of the U.S. consumer will allow certain sub-sectors of the industry to continue flourishing.

Casinos Struggling to Drive Traffic

Casinos operating in major U.S. gaming destinations such as Las Vegas and Atlantic City have reported consistent declines in gaming revenues, lower traffic volume and lower average revenue per room during the first half of 2008. Given the current low levels of consumer confidence, rising unemployment and general uncertainty regarding the future state of the economy, this decline is not entirely unexpected. In an attempt to combat this trend, major resorts are discounting room rates to attract enough gamblers to keep their roulette wheels and slot machines spinning.

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Healthcare Industry Review Q3-2008; McGladrey Capital Markets

Key Trends

Home Healthcare


Home-based healthcare spending is projected to increase 7.5 percent annually over the next 10 years, outpacing overall growth in U.S. health spending and reaching $119 billion by 2017. Higher incidences of chronic conditions, better utilization of information technology, a stable Medicare and regulatory environment, and an aging population eager for cost-effective treatment at home all support this favorable outlook.

Universal Health Coverage

Universal health coverage is available in most large, industrialized nations, and many believe it could be the key to reversing rapidly increasing healthcare costs and covering the more than 47 million uninsured in the United States. Various proposals have been introduced, including such ideas as a government voucher system for a standard benefits package, evolving the current system to allow for portable insurance via state-chartered insurance exchanges, and expanding Medicare and the State Children's Health Insurance Plan to allow everyone to enroll.

Read complete report.