Industry Reports

Q4 2018
The global Security market is anticipated to reach $167.1 billion by 2025, representing a compound annual growth rate of 10.2%, according to Grand View Research. Profound industry growth has primarily been driven by the need to integrate and enhance security capabilities in the wake of global terrorism and public safety concerns. Increased industry competition as a result of heightened demand and new technological capabilities have supported premium valuations as private equity-backed companies continue to consolidate.
Q3 2018
Significant merger and acquisition activity in the Value-Added Distribution Industry has continued through year-to-date (YTD) 2018 on the heels of prolonged industrial and manufacturing expansion, shifting consumer preferences, and the ongoing proliferation of technology-based operating solutions. With 80 announced or closed transactions, YTD 2018 activity is on pace with that of 2017. Private equity continues to maintain a significant share of deal activity and has accounted for 37.5% of YTD transactions in the space.
Q3 2018
The record-breaking US bull market, characterized by historic levels of disposable income, rising consumer sentiment, and a 5.2% year-over-year increase in consumer expenditure, has driven an upswing in the Payment Processing industry. Expanding consumption coupled with the shift toward real-time, omnichannel payment processing systems has allowed niche companies to emerge and capture market share.
Q3 2018
This year, companies are fighting for top talent in the US as the number of job openings eclipsed the number of job seekers for the first time on record.  The tight labor market has emboldened workers to quite their job, with or without another opportunity lined up, with little fear of long-term unemployment.  According to the Bureau of Labor Statistics (BLS), the number of workers leaving their jobs reached 3.6 million in July, surpassing prerecession levels.
Q3 2018
Within the Interconnect Components industry, merger and acquisition (M&A) activity has remained healthy through year-to-date (YTD) 2018. With 40 transaction announced or closed, M&A volume has approached that of YTD 2017 and is expected to challenge total volume experienced in 2016 and 2017 by year-end. Though M&A activity remains robust in terms of volume, Capstone Headwaters has identified bifurcation in the market.
Q3 2018
Merger and acquisition (M&A) activity in the Security Solutions industry has been robust through year-to-date (YTD) 2018 with 93 acquisitions announced or completed. While the first half of the year was defined by Ares Private Equity Group’s acquisition of Convergint (February) as well as Motorola’s acquisition of Avigilon (March,), the second half has mainly been driven by middle market deals.
Q2 2018
The Payment Processing industry continues to see robust merger and acquisition (M&A) activity, with 47 deals announced or closed year-to-date (YTD) compared to 41 in 2017.  The vibrant economy has boosted consumer confidence and spending power, which has increased demand for payment processing solutions.  Notably, three prepaid card companies (iPayment Holdings, Next Gen Gifting, and Gift Card Impressions) have been acquired in 2018, demonstrating the continued appetite for companies in this segment.  
Q2 2018
Favorable macroeconomic conditions continue to provide substantial tailwinds for the Security Solutions industry and have contributed to sustained growth for industry operators in recent years.  The Security Alarm Services segment has grown 5.4% annually over the past five years to 2018, with revenue estimated to reach $25.7 billion, according to IBISWorld.1  Much of this growth has been driven by rising residential and commercial construction activity, which has bolstered demand for new security system installations.    
Q2 2018
Fueled by bullish economic conditions, growing demand across a diverse spectrum of end-markets, and the proliferation of data and IoT driven applications, the Interconnect Components industry has experienced consistent growth throughout the past few years.  
Q2 2018
The tightening labor market has driven demand for specialized staffing firms. Companies offering niche recruiting services that have been acquired in 2018 have included: Construction Labor Contractors, Smart Rhino Labs (Truck Driving), Gros Executive Recruiters (Plastics and Packaging), Roy's Staffing (Hospitality), Carnegie Affiliates (Information Technology), and Access Staffing (Industrials).  

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