Industry Reports

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
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
Amazon and Agriculture: Changing the Landscape of Food Distribution is the first issue of our multi-part Point of View series that analyzes the trends having the greatest impact on the food-supply chain – from farm to table.  Upcoming topics will include water rights, the changing tax code and the impact of immigration on farm labor.  We will also explore crucial macrotopics such as how AgTech is answering the challenge to feed 9.8 billion people by 2050, how consumer preferences are changing what we grow and eat, and how consolidation is affecting pricing and the industry&r
Q2 2018
Over the past decade, high profile water crises in major markets have increased awareness of looming problems, including jeopardized water supplies in Georgia, Texas, California, and South Africa.  Nevertheless, the Water Infrastructure industry shockingly continues to grow in unison with the overall economy.  That being said, there are pockets of growth and, consequently, areas of focus for mergers & acquisitions (M&A).  
Q2 2018
The global Medical Device Outsourcing (MDO) market is projected to expand at a compound annual growth rate of 10.4% to reach a market size of approximately $64.0 billion by 2023, according to an April report by Research and Markets.1  Growth drivers include increased incidence of chronic disease as the population ages, continued innovation in medical technology, and enhanced pressure to reduce development and manufacturing costs as payers migrate to value based reimbursement models.    
Q2 2018
The year 2017 was a banner year for the Freight industry.  Many records were broken and the current cycle looks like it has many more years to run.  Overall, Transportation & Logistics (T&L) is an incredibly vibrant sector.  As shown in the chart below, Capstone Headwaters’ T&L Index, which tracks leading public companies in the space, has maintained historically strong EBITDA multiples.  
Q2 2018
One thing was abundantly clear from the record freight levels achieved in North America in the fourth quarter of 2017: equilibrium in freight markets quickly went out the window during that period!  In particular, spot rates for truckload (TL) modes of transportation appreciated much faster than brokerage outfits could adjust their own pricing to carriers.  This freight dynamic is the double-edged sword of brokerage markets and one of the reasons managers of freight endure some sleepless nights.    
Q2 2018
E-Commerce & Internet Retailing is a fast growing industry with healthy fundamentals and strong tailwinds.  According to the US Department of Commerce, total e-commerce sales in the US reached ~$453.5 billion in 2017, a 16.0% increase over 2016 and the largest year-over-year increase since 2011 (17.5%).  
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
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.    

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