M&A Environment in 2012

We do not anticipate this "thinning of the herd" will be completed or close to completion in 2012. Thus competition will slowly continue to push the weaker players towards sale or strategic alliance. To owners and managers occupying this segment of motivated sellers, we offer the following advice: be the first ones to the beach. We expect diminishing valuations for the late adopters, while early adopters may reap the rewards, becoming platforms for industrial focused private equity firms or the crown jewel in a strategic expansion.