Industry Reports

Q3 2017
 Advancing technology – which has made mapping, modeling & simulation (MM&S) software more cost-effective – has been a boon for training and simulation activity. As a result of the growing accessibility of this technology, the end-markets in the MM&S Industry are incredibly diverse, ranging from healthcare, education and defense to construction, gaming and renewable energy.
Q3 2017
After peak activity in 2016, the outlook for merger and acquisition (M&A) activity in Behavioral Healthcare remains positive. Compared to 2015, which had only 18 deals announced or completed over the same year-to-date time period, M&A activity was robust thus far in 2017, with 27 deals announced. Capstone expects healthy deal activity through the end of this year and into 2018.
Q3 2017
Healthcare staffing M&A activity and valuations continue to outperform the broader staffing sector. Through June 30th, there have been 20 transactions within the Healthcare Staffing industry, representing 19.6% of the completed deals within the broader Human Resource and Staffing sector, and a sizable increase in volume relative to the same period last year.
Q3 2017
Through June 26, merger and acquisition activity in the command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR) industry has been robust with 28 announced or closed deals.  This is compared to just 10 transactions identified during the same period in 2016.  The market is on the cusp of rapid expansion due to heightened security needs, counterterrorism efforts and re-energized attention on rebuilding America’s warfighting abilities.  
Q3 2017
As mobile, machine learning and biometric technology continue to mature, payment processing solutions continue to evolve and increase in demand. As a result, the Payment Processing industry continues to experience strong M&A activity. Valuations are at premium levels through Q2 2017, indicating a strong seller’s market in the Payment Processing industry.
Q3 2017
 The Education Technology (EdTech) industry has seen healthy M&A activity through Q3 2017.  While deal volume has stabilized after a record amount of activity in 2016, public valuations continue to rise from their low of 2.6x revenue in 2016 to reach 3.7x revenue in July 2017. Private equity groups see strong growth prospects and attractive investment opportunities in EdTech, indicated by an increase in their share of total acquisition volume and a number of high profile acquisitions including that of Ascend Learning. 
Q3 2017
Merger & acquisition (M&A) activity in the chemicals sector has been very robust, as compared to other industries, with respect to both deal volume and total deal value.  The Chemical sector is currently experiencing an “M&A boom” that is anticipated to continue through 2017 and into 2018.  
Q3 2017
The Recreational Products consumer base is vast and diverse, with more than 145 million people participating in outdoor recreational activities each year. According to the Outdoor Industry Association (OIA), there are more participants in recreational sports than there are total attendees to the NFL, NBA, MLB and NHL games.  
Q2 2017
Transaction volume continues at a healthy pace with deals being done throughout all segments of the pet space.  Public companies in the products and services segments continue to perform well, reaching an average EBITDA multiple of 21.6x in June 2017.  The high multiple indicates that companies can most likely expect to receive premium valuations should they choose to pursue an exit.  
Q2 2017
SaaS and Cloud companies continue to see strong growth as the industry continues to innovate. As businesses rely more on technology to help run their operations, the importance of SaaS and Cloud solutions cannot be understated and their recurring revenue business models are very attractive to both public company and private equity investors. M&A in this segment remains very robust as LTM Q2 2017 M&A dollar volume reached a new five-year high, though we expect that to fall in coming quarters as several megamergers in Q2 and Q3 of 2016 drove the bulk of dollar volume.

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