| Market Pulse Survey – 2nd Quarter 2019 Presented by IBBA, M&A Source and in Partnership with Pepperdine University |
Looking at the overall market, construction/engineering, business services, and personal services led among hot industries. This is the first time construction/engineering has held such a prominent share of market activity.
Figure 4: Top Industries by Market Sector
| <$500K | Restaurants | Personal Services | Consumer Goods |
| $500K-$1MM | Construction/Engineering | Consumer Goods | Business Services |
| $1MM-$2MM | Construction/Engineering | Business Services | Personal Services |
| $2MM-$5MM | Manufacturing | Business Services | Construction/Engineering |
| $5MM-$50MM | Construction/Engineering | (tie) Business Services, | Mfg, Health, Wholesale |
Construction activity is hot right now. Companies have strong balance sheets, so they’re expanding their facilities and state and local governments are reinvesting inroads. It makes sense that construction companies are selling now and getting out while things are good.
Private equity can drive a lot of trends. A few years ago, very few would look at construction. Now, they’re seeing opportunity to help great technicians and tradespeople become better business managers. We’re seeing rollups in niche specialties and its boosting activity in the wider market.