Industry Reports

Published on: 03/22/2021
The rise in e-commerce, social media, and digital news has driven shifts in marketing and advertising to digital channels, accelerating the Marketing Technology (MarTech) and Advertising Technology (AdTech) segments. MarTech and AdTech’s emersion in the space has created competitive advantages over traditional marketing services providers, offering precise marketing solutions coupled with tracking real-time analytics for active campaigns.
Published on: 03/22/2021
COVID-19 has placed heightened focus on digital solutions with the continuation of remote work, expediting executives’ timelines for digitizing internal processes, products, and services. To meet demand, AppDev & deployment companies have scaled organically and inorganically through mergers and acquisitions (M&A). 
Published on: 03/19/2021
Optimism in the Construction Services industry has been supported by an improving backlog of projects and heightened confidence for near-term sales and employment.  Merger and acquisition (M&A) activity in 2020 trailed prior year levels as Q2 experienced a drastic slowdown in transaction volume, however volume has surged through year-to-date (YTD) 2021.
Published on: 03/19/2021
Chemicals have played a critical role throughout the pandemic providing inputs for disinfection and sanitation, protective equipment, and medical supplies and equipment.  However, pandemic-induced manufacturing slowdowns and demand shocks have challenged chemical producers in 2020. While specialty chemicals saw depressed demand across nearly all end markets in Q2 and Q3 2020, Capstone expects end market recovery to fuel demand throughout 2021, driving merger and acquisition (M&A) activity.
Published on: 03/18/2021
Although software companies focused on in-person events have been hurt by stay-at-home orders, COVID-19 has generated demand for software providers with Nonprofit clients seeking to diversify funding.  As corporations have increasingly encountered scrutiny for their position around social issues amid the pandemic and Black Lives Matter (BLM) movement, enterprises have heightened focus on corporate social responsibility (CSR) and environmental, social, and corporate governance (ESG).  Capstone expects the combination of rising CSR and accelerated technology adoption to produce heightened market activity in 2021.
Published on: 03/18/2021
Capstone has reported that EBITDA multiples of large public waste and recycling companies have returned to pre-pandemic levels driven by sustained demand for waste management and recycling services during the pandemic and recent increases in commercial and residential waste volumes. However, waste and recycling companies continue to face operational challenges due to staffing limitations and social distancing requirements. While merger and acquisition (M&A) activity decreased by 23.1% in 2020 year-over-year (YOY), Capstone expects transaction volume to increase in 2021 as companies continue to consolidate.
Published on: 03/17/2021
Capstone Headwaters has released its March 2021 Business Process Outsourcing (BPO) & Contact Centers Industry Update, available for free download below. Operational challenges amid COVID-19 have placed heightened focus on cost-effective, consumer oriented BPO and contact center solutions as companies look to increase productivity, while simultaneously retaining their consumer base.
Published on: 03/16/2021
While some segments of HCM SaaS struggled amid COVID-19, areas such as Remote Workforce Management have experienced heightened demand.  The shift to virtual work is expected to remain a key focus area for enterprises in the future. As the industry continues to recover, Capstone predicts multiples to rise and merger and acquisition (M&A) activity to remain strong through 2021.
Published on: 03/12/2021
Capstone Headwaters’ Debt Advisory Group has released its March 2021 Middle Market Leveraged Finance Report, with timely insight on the volume, pricing, and leverage statistics of today’s Credit markets. While deal volume was depressed through much of 2020, lending activity returned in Q4 due to a strong push from sponsor leveraged buyouts (LBOs), add-ons at attractive multiples, and recapitalizations initiated during the pandemic. 
Published on: 03/04/2021
COVID-19 has placed heightened focus on Enterprise SaaS & Cloud solutions with the continuation of remote work and acceleration of the digital environment. As a result, market activity rebounded in the second half of 2020, providing a favorable outlook for the industry in the coming year. Due to healthy valuations and the expected tax increase motivating sellers, Capstone predicts robust M&A activity through 2021.