The experts within our Test, Measurement and Sensors Group maintain ongoing contact with a wide range of knowledgeable sources to stay abreast of the issues and trends that could impact the industry’s M&A climate or otherwise influence our clients’ businesses.  Following are a few of the topics addressed in our most recent Test, Measurement and Sensors Review, which is published quarterly.

------------------------------------------------------------------------------

TEST, MEASUREMENT AND SENSORS REVIEW (2009: Q4) (View complete report)

The global economic crisis and related banking crisis led to a double digit year-over-year decline in overall M&A activity in 2009. Global deal volume was down 15.7 percent with North America experiencing a steeper decline in activity of 23.4 percent.  Appetite for M&A was restricted in 1H09 due to constrained bank lending and an inadequate supply of good companies. In line with the overall M&A trends, test, measurement & sensors (TM&S) deal activity remained challenged in 2009, due to global production cuts and slowdown across industries.

TM&S isn’t a category that neatly falls under one roof. TM&S products and services encompass a broad range of industries from basic manufacturing and construction to software and high technology applications. Our research and analysis indicates that TM&S deal activity declined 29 percent year-over-year in 2009, with aggregate transaction volume for key industry players (included in MCM’s Custom TM&S Indices) declining from 41 deals in 2008 to 29 deals in 2009. Two of the three broad TM&S sectors — industrial and semiconductor — experienced continued weakness in orders.  New orders were impacted by tight corporate budgets, a decline in capital spending and deferred maintenance expenditures. Life sciences TM&S was a relatively attractive spot in 2009, with deal volume declining 15 percent year-over-year, compared to over 40 percent declines for the industrial and semiconductor TM&S sectors. Life sciences TM&S demand was primarily driven by an uptick in orders from government agencies and academic research organizations, which were partially supported by an incremental allocation of $8.2 billion by the National Institutes of Health (NIH) for life sciences research.

Want to read more?  View the complete report now

 Get Industry Reviews delivered to your email