Capstone Headwaters Reports: COVID-19 Accelerates Digital Adoption in Water Infrastructure Industry

September 17, 2020

Boston, MA – Capstone Headwaters released its Water Infrastructure update today, reporting that pre-COVID trends of rapid urbanization and aging water and wastewater infrastructure have been catalysts for innovation and advancement in the Water Infrastructure industry.  While COVID-19 has stressed revenues and financial visibility, it has also accelerated the adoption of digital and remote technologies to drive effective asset management, efficiency, and cost reduction in water systems. 

“While utilities have been challenged by the economic slowdown in 2020, opportunities abound for service providers whose services offer a high ROI.  We expect that businesses that touch areas like water efficiency management, remote asset monitoring and data analytics should be doing just fine these days” said Ted Polk, Managing Director.

Merger and acquisition (M&A) activity has declined through year-to-date (YTD) 2020, with 91 transactions announced or completed, compared to 155 in YTD 2019.  Through much of the first half of 2020, strategics have employed COVID-19 mitigation strategies including layoffs, furloughs, and utilization of credit facilities while PE firms have focused on the health of platform investments, promoting a more selective buyer universe.  In a tightened deal environment, targets with a robust recurring revenue profile, expansive customer base, and resilient end markets have garnered sustained M&A interest. 

Capstone Headwaters is one of the largest and most active independent investment banking firms in the United States.  The firm has a rich 15+ year history of achieving extraordinary results for middle market entrepreneurs, business owners, investors, and creditors.  Capstone offers a fully integrated suite of corporate finance services, including merger & acquisition, debt & equity placement, corporate restructuring, valuation & fairness opinion, financial advisory, and ESOP advisory services.  Headquartered in Boston, the firm has 150+ professionals across 16 offices in the U.S., with and an international presence including over 450 professionals in 40 countries. With 16 dedicated industry groups, the firm delivers sector-specific expertise through large, cross-functional teams on a global basis.  Capstone has been named “U.S. Middle Market Investment Bank of the Year” for the past 9 consecutive years and is consistently recognized as one of the top investment banking firms to work for. For more information, visit

For More Information Contact the Key Report Contributors: 

Ted Polk  
Managing Director 

Lisa Tolliver 
Senior Director