Industry Reports

Published on: 11/18/2020
C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) continues to serve as primary “enabling technologies” across military air/land/sea/space platforms and the joint networks that allow for interoperability across these mission critical systems.  Many C4ISR companies were deemed essential at the onset of the COVID-19 pandemic and The Defense Production Act, invoked in March 2020, further buoyed the sector by authorizing federal government loans and prioritizing government orders to ensure continuity of supply.  These immediate buffers helped mitigate business loses across the Defense industry.  
Published on: 11/18/2020
The EH&S industry has been instrumental in combating the novel coronavirus.  EH&S operators that provide personal protective equipment (PPE) as well as sanitization products and services have seen an unprecedented uptick in demand as states follow suggested Center of Disease Control (CDC) and Occupational Safety and Health Administration (OSHA) guidelines to protect workforces and prevent the virus’ spread. 
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: 11/13/2020
Merger and acquisition (M&A) activity reached a record of 2,564 deals totaling over $150 billion in value over the last twelve months. M&A activity soared in Q3 to 945 deals, exceeding the prior quarterly record by nearly 300 deals while doubling Q2 volume. However, deals for the quarter tended to be smaller transactions at weaker multiples.
Published on: 11/12/2020
Capstone Headwaters’ Debt Advisory Services Team has published its Q3 Middle Market Leveraged Finance Report, offering insight on the volume, pricing, and leverage statistics of today’s credit markets.
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: 10/23/2020
The Packaging industry has displayed resiliency during COVID-19, driven by the accelerated adoption of e-commerce, consumer pantry loading, and demand for healthcare, pharmaceutical, and hygiene packaging solutions. Despite a challenging economic climate, packaging providers have continued to attract demand in defensible end markets while experiencing softness in industrial markets and discretionary goods.
Published on: 10/23/2020
The performance of publicly traded T&M companies since the onset of COVID-19, shows that while the sector initially suffered a dramatic correction along with the rest of the Technology sector, it has led a recovery into positive territory and showed resilience since mid-June.  We expect this strength to continue for the remainder of the year, placing the sector in an enviable position to benefit from a return to sustainable economic growth in 2021. 
Published on: 10/23/2020
 COVID-induced headwinds through Q2 2020 manifested in project delays and cancellations, supply chain challenges, and workforce capacity restrictions, contributing to substantial declines in construction spending.  However, industry demand has rebounded in recent months, with construction notching three consecutive months of gains, rising 1.4% in August, according to the U.S. Census Bureau. 

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