Industry Reports

Published on: 01/19/2021
Capstone Headwaters has released its most recent Health & Wellness update, available for download below. The Supplements industry has powered through COVID-19 by leveraging e-commerce capabilities, which has been reflected in premium valuations, fueling what could be a positive merger and acquisition trend for business owners.  
Published on: 01/04/2021
Companies in the space have been forced to rapidly adapt their business models amid the COVID-19 pandemic, as state-mandated lockdowns restricted in-store sales and consumer spending retracted due to job losses and economic uncertainty.  The technology changes that were accelerated and the possibilities that were illuminated during this era will undoubtedly reshape much of the Retail industry going forward as winners and losers are assessed in the aftermath of the pandemic and their business models replicated. 
Published on: 12/14/2020
Following substantial headwinds during the onset of the pandemic, the Home Goods industry has demonstrated a remarkable recovery driven by consumers’ heightened focus on home furnishings and improvement amid increased time at home.  Quarantine restrictions and work from home trends are fueling home goods spending and investors are showing increased attraction to the sector.  Capstone expects merger and acquisition (M&A) activity to accelerate for quality home goods companies with established online channels, strong brand recognition, and differentiated business models. 
Published on: 11/30/2020
Despite significant headwinds introduced by COVID-19 in the Personal Care industry, demand has persisted for brands with favorable product mixes and robust e-commerce capabilities.  While deal-making has slowed through year-to-date 2020 compared to the prior year, personal care brands and manufacturers have continued to draw sustained buyer interest, with the Skincare/Bodycare segment comprising the highest percentage of transactions. 
Published on: 11/17/2020
E-Commerce demand has reached unprecedented levels amid COVID-19 with online sales rising 44.5% in Q2 year-over-year, accounting for over 16% of total retail sales, according to the U.S. Census Bureau.  As consumer preferences for digital capabilities have accelerated, online marketplaces have captured heightened sales growth.
Published on: 11/02/2020
COVID-19 lockdowns and social distancing protocols have driven consumers to increasingly pursue recreation and leisure activities, contributing to heightened demand for outdoor, sporting goods, and tactical product manufacturers.  Notably, bicycle sales have increased dramatically, rising 63% year-over-year, amounting to $679 million, with mountain bikes and road bike sales up 92% and 87% in June, respectively, according to NPD.  
Published on: 10/30/2020
The coronavirus and the subsequent lockdown has translated into increased time at home with pets and an acceleration in pet humanization trends. With favorable pet humanization, e-commerce, and ownership trends, the space is likely to continue to foster heightened interest among private equity and strategic buyers, alike. Attractive acquisition targets have displayed strong omnichannel sales capabilities, health and safety-centric products, and brand recognition. 
Published on: 10/19/2020
Increased levels of consumer spending, effective inventory management, and efficient supply chain capabilities are expected to be key factors contributing to a sustained recovery in the Juvenile Products industry through the remainder of the year and into 2021. 
Published on: 08/14/2020
Capstone maintains relationships with an extensive private equity network, which gives us access to unique buyer perspectives and industry insights.  We spoke with many of these private equity firms in Q2 to learn more about the current state of the Food & Beverage Distribution environment and COVID-19’s unprecedented impact on their respective distribution businesses.
Published on: 07/14/2020
Recent volatility has unveiled the weaknesses of highly correlative and cyclical businesses while simultaneously illuminating recession resistant and opportunistic profiles.  As COVID-19 prompted consumers to shift buying habits towards online channels, investors have sought risk adjusted returns outside of severely battered equities.