Industry Reports

Q1 2018
For the third consecutive year, merger and acquisition (M&A) activity in the Personal Care Products & Services industry surpassed the record level achieved in the previous year. Across the majority of middle market industries, private equity groups (PEG) deployed significant levels of capital and captured a larger share of deals relative to 2016. However, the Personal Care Products & Services industry broke this trend as PEG deal share shrunk from 46.3% in 2016 to 33.6% in 2017.
Q1 2018
The share of online shopping is expected to see continued growth, and IBISWorld has projected e-commerce sales to increase at an annualized rate of 7.8% between 2017 and 2022. The improving economy and rising household wealth also provide favorable tailwinds for the e-commerce industry and should boost overall sales in the Consumer and Retail sector. Collectively, these trends and positive industry outlooks are driving companies to both build out their online platforms and to seek growth through acquisition.
Q1 2018
Demand for Healthcare Information Technology (HCIT) has been robust, as technology continues to mature and to create new possibilities in the industry. Last year, 184 HCIT mergers and acquisitions (M&A) were announced or closed—modestly outpacing deal volume in 2015 to set a record high. Additionally, Rock Health reported $5.8 billion in venture funding, shattering the previous high of $4.6 billion in 2015.1 Strategic buyers continued to drive the majority of M&A deals, accounting for 56.0% of volume in 2017.
Q1 2018
M&A activity in the human capital management SaaS segment remained strong in 2017 with 65 transactions, down from the 5 year-high of 75 transactions last year.  The median revenue multiple paid for private targets decreased slightly to 5.0x in 2017, remaining near the five-year-high of 5.5x set in 2016.  The M&A window remains open with valuations favorable to the seller although there is some risk that a market correction impacts valuation multiples longer term.
Q1 2018
Amidst blockbuster M&A activity in the Aerospace and Defense (A&D) industry, such as Northrop Grumman’s $9.4 billion acquisition of Orbital ATK and United Technologies’ $30.3 billion acquisition of Rockwell Collins, the avionics marketplace experienced robust deal activity in 2017. While middle market, frequently private, transaction multiples are often not disclosed, the volume of activity and the prevalence of premium valuations throughout the Aerospace sector indicate the seller’s market persists.
Q1 2018
With 164 deals announced or closed, merger and acquisition (M&A) activity remained robust during 2017, eclipsing that of the previous two years and challenging the record level from 2014. Accelerated M&A activity during the year was propelled by a strengthening labor market and a 17-year low unemployment rate (4.1%), which resulted in heightened demand for quality talent. 
Q1 2018
With 32 deals announced or closed, merger and acquisition (M&A) activity in the Juvenile Products industry remained healthy during 2017, albeit at a reduced level relative to previous years.  Transaction volume declined 15.8% compared to that of 2016, which is reflective of the trend in the overall middle market.    
Q1 2018
In 2017, 45 mergers and acquisitions (M&A) were announced or closed in the eLearning, Corporate & Professional Training industry compared to 53 deals in 2016.  Deal activity was moderate throughout Q1 and Q2, as buyers remained cautious in the wake of the election.  Capstone expects the first half of 2018 to experience intensified M&A activity in the aftermath of this lull  
Q1 2018
Favorable macroeconomic conditions coupled with accelerated demand for key end-markets have continued to support steady growth in the Packaging industry.  Rising levels of disposable income and the resulting growth within   Food and Beverage, Consumer Goods and Pharmaceutical industries is anticipated to generate parallel increase in Packaging industry revenue.  
Q1 2018
Consolidation in the Medical Device Outsourcing (MDO) industry continues unabated driven by favorable industry dynamics (aging population, greater healthcare utilization and innovation), demand from clients for broader portfolio of services and turnkey solutions and mega mergers among OEMs and subsequent desire to streamline their supply chains.   

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