Quarterly Private Equity
Deal Flow Reports

McGladrey is partnering with PitchBook to provide quarterly private equity deal flow reports specifically designed for four key industries: business products and services, consumer products, health care and technology. These industries were chosen for their relevance and importance to the private equity market.

The reports profile trends for each industry in private equity investing, exits and fundraising.

Second Quarter 2013

Business Products and Services
Private equity firms completed just 121 deals totaling $6.8 billion in business products and services (B2B) companies during the quarter, making it the slowest quarter in more than three years.

Consumer Products and Services
Deal flow in the consumer products and services industry fell to the lowest level in more than three years, with private equity firms completing just 75 transactions in Q1 2013. Despite the massive 44 percent drop in deal flow, capital invested remained strong at $21 billion.

Health care
The health care industry did not see as significant of a run-up in activity in Q4 2012 as many other industries. Taking this into consideration, it was somewhat surprising to see that deal flow and capital invested in the health care industry were at three-year lows in Q1 2013.

Information Technology
Investment in IT companies plummeted from Q4 2012 to Q1 2013. Private equity firms executed 46 transactions totaling $5.2 billion in Q1 2013, decreases of 36 percent and 67 percent, respectively, from the previous quarter.

2012 Year in Review/Q1 2013

Business Products and Services
Deal-making in the business products and services industry was down 9 percent from 2011 to 2012. However the fourth quarter had a strong showing with $32.6 billion invested, the highest quarterly total since 2007.

Consumer Products and Services
Despite a strong close to 2012, the outlook is still relatively grim for the consumer products and services space. The industry's sluggish performance should continue into early 2013, as businesses have cut prices due to soft volume, which has resulted in downward pressure on margins.

Health care
Unlike virtually every other industry, private equity deal-making in the health care industry declined in the fourth quarter of 2012. It was also a disappointing year on the exits front, as health care was the only industry to see a downtick in exit volume from 2011 to 2012.

Information Technology
Private equity capital invested in the IT industry increased for a fourth consecutive year in 2012, as it was the only industry to see an uptick in deal-making from 2011 to 2012.