M&A activity in the personal care industry remains strong. Like most sectors, the industry experienced a decline in activity in 2013, as the impending capital gains tax rate increase artificially inflated the number of transactions in 2012 and, once implemented, contributed to a drop in 2013. Capstone’s research shows that the number of transactions in the industry reached 77 last year, representing a 23% decline. Combining 2012 and 2013 results in an average of 89 transactions per year, a healthy figure and more indicative of the market had it not been impacted by the timing of the tax change. Year‐to‐date numbers for 2014 indicate that M&A activity in the sector has resumed, and the number of transactions is currently on‐track to exceed the number of deals in 2012.