Industry Reports

Q2 2018
With more than 23 separate school shooting incidents to date in 2018, the issue of public safety in schools and in general is at the forefront of both social and political conversation.1 Consequently, the need to cultivate a better prepared law enforcement population has become paramount. Virtual and hyper-realistic simulation has become the training of choice for this need, as it can replicate real-life events that officers may encounter in the field, ranging from domestic violence incidents to active shooter situations.
Q2 2018
Buyers continue to target Healthcare Information Technology (HCIT) companies as they seek to modernize and adapt to the evolving landscape of the US healthcare system.  One key regulatory change that is impacting the Healthcare industry and sparking HCIT merger and acquisition (M&A) activity is the shift from the current volume-based (fee for service) payment model to a value-based payment model.  
Q2 2018
Following the acquisitions of Chewy.com (April 2017) and Blue Buffalo (February 2018) – the two most disruptive companies in the Pet & Animal Care industry – it is expected that consolidation and merger and acquisition (M&A) activity will intensify as operators adapt to the new competitive landscape.  Large retailers will explore acquisition opportunities to add additional store formats, new service capabilities, direct-to-consumer channels, and supporting technologies.
Q2 2018
Merger and acquisition (M&A) activity in the Maintenance, Repair & Operations (MRO) industry remains healthy through year-to-date 2018.  Public companies have accounted for some of the most significant transactions over the course of the past two years, including Applied Technologies’ acquisition of FCX in January 2018 ($784.0 million) and Sentinel Fluid in March 2017 (undisclosed), Stanley Black and Decker’s acquisition of Nelson Fastener in April 2018 (~$400.0 million), and MSC Industrial Direct’s acquisition of All Integrated Solutions in May 2018 ($86.0 mi
Q2 2018
The robust economy has driven industry growth, as consumers with high disposable income levels have more to spend on discretionary products and services.  Currently, the median public company EBITDA multiple in this industry is at 20.0x compared to 15.7x in May 2017.  Proctor & Gamble (NYSE:P&G) has acquired New Zealand-based Snowberry, a skincare company that specializes in natural ingredients (February, valuation undisclosed).  The deal builds on P&G’s acquisition of natural deodorant brand Native (November 2017, $100.0 million) and is reflective of curren
Q2 2018
M&A activity in the application development and deployment space continues to be strong with 18 transactions completed thus far in 2018.  Enterprises are increasingly focused on accelerating their application development lifecycles, adopting DevOps methodologies, proactively addressing application security and leveraging cloud deployment models.  Capstone Headwaters recently announced their fourth closed transaction in the space over the past 24 months with the sale of Programming Research Ltd. (PRQA) to Perforce Software.
Q2 2018
In this quarterly report, provided exclusively for Rock Products, Capstone Headwaters provides insight into merger & acquisitions (M&A), capital markets trends, aggregate production and pricing through Q2 2018.  Capstone Headwaters' Building Products & Construction Services Team advises  industry business owners, entrepreneurs, executives and investors in the areas of  merger and acquisitions, capital raising and various special situations advisory.  Due to our background and laser focus within the industry, Capstone Headwa
Q2 2018
Traditionally, fixed phone line services, Internet connectivity, mobile telecommunications, and TV services (terrestrial, cable, and satellite) have been delivered as discrete services by different companies.  Over the last 10 to 15 years, service providers and network operators have chased revenue growth, while at the same time struggling with the never-ending battle against subscriber churn.    
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.    

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