Private equity firms is still a powerful force in the plastic industry mergers and acquisitions
In the foreseeable future, private equity firms is still a strong force in the merger and acquisition of plastic companies.
Plastic financial summit was held in Chicago, financial executives John Hart at the meeting revealed: 2005 - 2007 annual global plastics enterprises the average M & A transactions amount to 93, 2012 -- 2015 this figure rose to 125.
Corporate Finance Hart, general manager of P&M, said that when the choice to sell the business, private equity is a key option we value. Capital Partners Altus partner Greenberg said plastics companies to give private equity firms a small business development and growth opportunities.
Like private equity investment enterprises of plastic which one reason is they usually are in the consumer market, the trend in a shorter cycle, investment plastics enterprises can make money from private equity firms more secure, according to Bain Capital, general manager of Hanau.
Although many plastic companies have matured, but they still have the creativity. In the performance and design has made a lot of progress, manufacturing flexibility is very important, because it can shorten the life cycle of products. Altus, Bain, Graham three plastic companies have invested over the years, but Hanau believes that the current market is close to saturation of plastic mergers and acquisitions, because it will pay a higher amount of the amount.
With the increase in the age of plastic business owners, they are happy to create opportunities for private equity firms. Because a lot of 60s and 70s, the boss has inherited problems, Graham investment of plastic enterprises, there are 2/3 of the family business.