The current global developments provide major challenges for many industries and companies. But even in the current situation, one may find companies that are on the winning side or at least not as badly affected as other market participants. We took this observation as an impulse to look at the crisis periods of the past few decades and thereby identified several sectors that, on the one hand, have a low susceptibility to crises and, on the other hand, so far have hardly been noticed by investors or have surprisingly little M&A activity.
In the “Crisis-Resistant Sectors with M&A Potential” series, we present a number of market segments that are highly resilient to short-term or cyclical fluctuations and may therefore be particularly attractive to investors.
Considering the increasing global number of trouble spots, the swelling threat to internal security and new medical and humanitarian disasters, the sector of civil security is becoming increasingly important. Whether in the course of the Corona virus crisis emergency hospitals have to be pounded out of the ground within a few days or operations in crisis areas become necessary, mobile and quickly deployable, secure equipment is required in many application areas. And security products and services are also becoming increasingly important in our everyday lives.
However, since there is often too little differentiation between civil and military security, this sector has so far received relatively little attention from institutional investors, even though many subsectors fit into the criteria of ethically sustainable investments.