Industry Reports

Q4 2018
Demand for special education, autism treatment, and early intervention services continues to grow as educators, pediatricians, parents, social workers, and the US government increasingly recognize the importance of intensive therapy in the formative years. Early childhood special education services have the potential to greatly enhance student outcomes as more children acquire the critical language, social, occupational, and fine and gross motor skills necessary to succeed academically.
Q4 2018
The Education Technology market continues to consolidate with rapid merger and acquisition activity in 2018. The number of announced or closed deals year-to-date climbed to 101—nearly double that of YTD 2017. States, school districts, and higher education institutions are prioritizing technology to enhance student learning outcomes and administrative tools.
Q3 2018
Year-to-date merger and acquisition (M&A) activity in the eLearning, Corporate, and Professional Training industry has been robust with 54 transactions announced or closed, 45.9% higher than deal activity during the same period last year. Technology has been the biggest driver of the energetic buyer activity as corporations adapt to new training methods (such as online, micro, and adaptive learning) and the demand for training in areas such as information technology (IT) and coding rises. Coding boot camps were frequently targeted as the burgeoning industry consolidates.
Q3 2018
Historically low unemployment, high per capita disposable income, and increasing levels of labor force participation among women are helping drive demand in daycare centers across the US. The long-term shift to service-based economies and the increasing emphasis on education by government and families are expected to support global demand for child care and early education as well as the developing markets for back-up dependent care and educational advisory services.
Q3 2018
The Education Technology (EdTech) Industry has seen robust merger and acquisition (M&A) activity in 2018 as digital solutions for textbooks, learning management, and blended teaching tools become more widely available and more regularly adopted. Both strategic and financial buyers have been aggressive in the industry and deal activity is poised to remain high as startup companies mature and the industry consolidates.
Q2 2018
Year-to-date (YTD), 11 mergers and acquisitions (M&A) have been announced or closed in the Post-Secondary Education (PSE) industry compared to 19 during the same period in 2017.  Within the Capstone Headwaters’ PSE Index, median public company trading multiples are strong, at 1.4x revenue and 10.5x EBITDA.
Q2 2018
A major growth driver for pre-college programs has been the increasingly competitive environment surrounding college admission. With students searching for ways to distinguish themselves from other college applicants, attendees with meaningful academic and leadership experiences can differentiate themselves from other candidates during the college application process.   According to the American Camp Association, summer camps and programs are an $18.0 billion industry.    
Q2 2018
Demand for eLearning, corporate & professional training solutions continues to climb, aided by the low unemployment rate (4.1%)1 and rising number of jobs in the US economy (projected by the Bureau of Labor Statistics to reach 20.5 million between 2010-2020).2 While companies may spend considerable time locating the ideal candidate, on the job training including, onboarding, licensing, and leadership development, is often required or ongoing.
Q2 2018
The Education Technology (EdTech) industry has attracted strong merger and acquisition (M&A) activity with 20 transactions announced or closed to-date in 2018.  Favorable industry dynamics, including high government expenditures on education, increased acceptance of tablet and smartphone utilization in the classroom, and the effectiveness of adaptive learning, are expected to drive M&A activity.    
Q1 2018
In 2017, 45 mergers and acquisitions (M&A) were announced or closed in the eLearning, Corporate & Professional Training industry compared to 53 deals in 2016.  Deal activity was moderate throughout Q1 and Q2, as buyers remained cautious in the wake of the election.  Capstone expects the first half of 2018 to experience intensified M&A activity in the aftermath of this lull  

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