Industry Reports

Published on: 10/20/2020
Early into 2019, the Post-Secondary Education (PSE) industry has already seen a significant rise in merger and acquisition (M&A) activity. Year-to-date (YTD), 24 transactions have been announced or closed—roughly double that of YTD 2018. The uptick in M&A reinforces the fact that the PSE market is finally reaching a healthy state where buyers are coming back to the table.
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: 10/16/2020
Deal volume and financings across the FinTech & Payments industry decreased 20% year-over-year (YOY) but increased 11% on a quarter-over-quarter basis.  The contraction in deals and financings reflects the adverse impacts of the COVID-19 pandemic that started in March and has continued through the end of Q3 2020.  In total, there were 152 mergers and acquisitions (M&A) announced in the space with Payments remaining the largest segment. 
Published on: 10/15/2020
The pandemic has catalyzed demand for AppDev and deployment software and services in order to meet the surge of online consumers, students, and employees in the remote environment. In the workplace, the pandemic has heightened the need for enterprise-wide digital transformations for improved connectivity and transparency. 
Published on: 10/08/2020
The substantial shift to remote working and heightened migration to cloud-based applications has underscored the need for robust and effective cybersecurity solutions.  As the attack surface expands, organizations have faced the task of securing sensitive data and communication outside of their on-premise enterprises due to COVID-19.  
Published on: 10/01/2020
The highly fragmented HVACR Services market presents ample consolidation potential, with an extensive supply of small, geographic-centric prospective add-ons. Capstone maintains relationships with an extensive private equity network, which gives us a unique pulse on buyer perspectives and insights in the HVACR industry. In this report, CEO AJ Brown of Alpine Investors-backed Apex Service Partners, and VP of Corporate Development Karan Aggarwal of Ares Management-backed CoolSys, provided Capstone with their perspectives and outlooks on the attractiveness of the HVACR Services market. 
Published on: 09/29/2020
Following four consecutive months of decline in construction spending, activity has begun to stabilize with July construction increasing a modest 0.1% from the previous month, according to the U.S. Census Bureau.  While tighter project financing conditions and weakened state and local government finances have presented challenges for aggregates producers, the backlog of activity has remained robust, supporting continued industry demand.
Published on: 09/17/2020
This follows Capstone’s recently advised sales of MMi Sonora to ARCH Global Precision, a portfolio holding of The Jordan Company, and EB Industries, LLC to MCM Capital Partners.  As evidenced by these transactions, private equity (PE) firms have shown a strong appetite for precision manufacturing companies and have comprised almost 60% of buyers in the space year-to-date.
Published on: 09/16/2020
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 is accelerating the adoption of digital and remote technologies to drive effective asset management, efficiency, and cost reduction in water systems.
Published on: 09/03/2020
Weakened downstream chemicals demand among Automotive, Construction, and General Industrial markets were partially offset by steady demand for synthetic materials for non-wovens in personal protective equipment, disinfectants, pharmaceuticals, and food and beverage ingredients. Global merger and acquisition (M&A) activity in the industry fell 3.6% year-over-year (YOY) through July, with a notable slowdown in May. However, several notable deals in June and July indicate buyers are returning to the table, albeit with tightened criteria and valuation expectations.

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