Industry Reports

Q4 2018
Year-to-date, 66 mergers and acquisitions were announced or closed in the Mapping, Modeling & Simulation industry putting activity on pace to meet or exceed 2017 activity. Strategic companies have been highly active as they leveraged acquisitions to access new customers and disruptive technology. The two largest transactions in 2018—Harris Corporation’s merger with L3 Technologies, Inc.
Q4 2018
Within the Behavioral Healthcare Services industry, companies that offered child and youth-oriented services accounted for 24.3% or 17 of the announced or closed mergers and acquisitions year-to-date. Activity in this segment has largely been driven by the national rise in children with autism (a 15.0% increase from 2016 to 2018, according to Autism Speaks) and the ongoing battle against opioid abuse (which is most prevalent among young adults ages 18-to-25 years old).
Q4 2018
Fundamentals remain healthy for the C4ISR industry, as the Pentagon’s top leaders continue to emphasize that providing resilient information networks and denying enemies the use of their networks is a top priority. Such conviction is reflected in the growing portion of the defense budget related to C4ISR systems. Following the appropriations measure signed in September that allocated $674 billion in defense spending for FY2019, spending increases are prioritizing capabilities to gain and exploit information in the theater from the tactical to the strategic level. 
Q4 2018
The Healthcare Staffing sector continues to benefit from an increasingly tight labor market due to strong economic conditions coupled with increased health care utilization as the US population agencies and a wave of retiring Baby Boomer healthcare practitioners. The gap between openings and hires in healthcare has been widening rapidly since 2014 reaching a projected labor gap in July of approximately 536,000 healthcare professionals according to the Bureau of Labor Statistics (BLS).
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.
Q4 2018
The Recreational Products industry has been supported by historical levels of disposable income and significant shifts in consumer preferences towards products and activities that promote healthy lifestyles. According to the Outdoor Industry Association’s “2018 Outdoor Participation Report,” 49.0% of the US population in 2017 participated in outdoor recreational activities, a slight increase from 2016.
Q4 2018
With 91 deals announced or completed in the Personal Care Products & Services industry year-to-date 2018, merger and acquisitions activity is poised to exceed or match that of 2017. This year, historic levels of consumer confidence and per capita disposable income have strengthened demand for personal care products & services. Capstone Headwaters’ Personal Care Products & Services public company index indicates average revenue growth of 9.8% for the last twelve months ending in September.
Q4 2018
Year-to-date 2018 continues to show strong merger and acquisition and financing markets across the Financial Technology (FinTech) sectors. A total of 88 M&A transactions completed in Q3 2018 puts the FinTech industry on pace for its strongest M&A year on record.  
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
Due to increasing Millennial pet ownership (35.0% of all pets are owned by Millennials), the trends towards pet pampering and humanization will continue to accelerate. As owners look to pamper their dogs and cats, they invest more than ever in pet care products that can contribute to the health, well-being, and happiness of their companions. For this reason, provisional estimates by the American Pet Products Association indicate that spending across pet products in the US will grow 4.0% in 2018 despite relatively modest growth in the total US pet population.

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