Building Energy Management - Coverage Report February 2021

Published on: 02/18/2021

Capstone has published its February 2021 Building Energy Management report, available for free download below.

In 2020, Building Energy Management (BEM) companies continued to accelerate the convergence of operation technology (OT) and information technology (IT), creating competitive advantages for those that provide technology-driven platforms and solutions.  The shift toward digitized offerings has played a significant role in sustainability initiatives and has fostered significant investment from strategic buyers looking to utilize real-time data analytics and automation to effectively reduce utility costs and deliver eco-friendly energy utilization.

Key highlights include:

  • Public companies in the BEM industry are currently trading around 12.5x EBITDA, outpacing pre-pandemic multiples. 
  • The heightened focus on corporate responsibility and lower energy costs is expected to drive additional demand for BEM solutions. 
  • Despite the sharp decline in Q2, deal activity quickly normalized in Q3 and Q4, tracking 2019 levels, presenting a favorable backdrop as we enter 2021. 
  • Private equity buyers continue to display robust interest in the space, accounting for 45.2% of total deal activity in 2020.

To learn more about the report or Capstone’s range of advisory services, please contact Managing Director, Ted Polk.

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