Precision Metalworking Industry Report 2021

2024-01-22T11:01:58+00:00Advanced Manufacturing, Downloads, Industry Reports|

Precision Metalworking is experiencing an unprecedented period of consolidation.  The FOCUS Advanced Manufacturing team has assisted owners and buyers of industry participants on 19 transactions and has dedicated a team of seven professionals to assist business owners in the industry as they navigate this terrain.  We provide M&A advisory services and locate the capital businesses need to grow. Our team is composed of seasoned investment bankers and advisors with extensive operating experience in manufacturing and distribution backed by a deep research team.   Our latest newsletter introduces you to our well-versed and experienced Precision Metalworking team and discusses topics such as market highlights, our transaction activity, industry trends and much more.

FOCUS U.S. Communications Service Provider Quarterly: Winter 2022 Report

2024-01-22T11:01:51+00:00Downloads, Industry Reports, Telecom Technologies & Services|

Public Markets

Unfortunately, the FOCUS Communications Service Provider Index (CSPI) continued its downward slide in our winter reporting period with a three-month drop of 8.7%. This was despite a favorable market backdrop in which the S&P 500 gained 10.7% and the NASDAQ gained 8.3%. The situation is similar for the full year period.The CSPI posted an annual loss of 12.4%, while the S&P 500 and NASDAQ closed out the year with gains north of 20%. Not surprisingly, sector multiples are lower than they were in the year-ago period.The CSPI’s revenue multiple dropped from 2.9x to 2.7x, while its EBITDA multiple fell from 8.3x to 7.6x

FOCUS Telecom Business Services Quarterly: Winter 2022 Report

2024-01-22T11:01:42+00:00Downloads, Industry Reports, Telecom Technologies & Services|

Public Markets

The FOCUS Telecom Business Services Index (TBSI) returned to positive territory this reporting period with a strong three-month gain of 9.0%. This put the TBSI in between the 10.7% return in the S&P 500 and the 8.3% return in the NASDAQ over the corresponding time frame. The sector looks even better over the longer 12-month time frame. The 34.6% gain in the TBSI outstripped both the 26.9% gain in the S&P 500 and the 21.4% gain in the NASDAQ. In addition, sector multiples went from 0.8x revenue and 9.4x EBITDA in the year-ago period to 1.0x revenue and 11.0x EBITDA at the end of the current reporting period.

FOCUS Carrier-Focused Telecom Technology Quarterly: Winter 2021 Report

2024-01-22T11:01:37+00:00Downloads, Industry Reports, Telecom Technologies & Services|

Public Markets

After a general upwards trend in our last several reports, the FOCUS Carrier-Focused Telecom Technology Index (CFTTI) reversed course and dropped 7.0% in our winter three-month reporting period. This was despite a reasonably favorable market environment in which the S&P 500 gained 1.0% and the NASDAQ gained 1.8%. Sector losses were broad-based as only one CFTTI sub sector managed to deliver a positive return. For the full year, the CFTTI is still in the black with a year-over-year return of 19.3%. Even with this strong performance, the sector still lags both the 26.1% return in the S&P 500 and the 27.4% return in the NASDAQ over the past 12 months. Sector multiples have shown meaningful increases com- pared to this same time last year. The sector revenue multiple went from 2.2x a year ago to 2.5x currently, while the sector EBITDA multiple increased from 11.3x to 12.0x.

FOCUS Enterprise-Focused Telecom Technology Quarterly – Fall 2021

2024-01-22T11:01:30+00:00Downloads, Industry Reports, Telecom Technologies & Services|

Public Markets

While sector performance has cooled off significantly since our last report, the FOCUS Enterprise-Focused Telecom Technology Index (EFTTI) still managed to deliver a positive return of 1.5% in this most recent three-month period. The sector underperformed the broader indices over this time frame as it lagged both the S&P 500 (up 4.8%) and the NASDAQ (up 5.6%).The situation looks better when measured over the full year as the EFTTI is up 37.8% in the past 12 months. While this still lags the 39.2% gain in the S&P 500 and the 39.6% gain in the NASDAQ, the gap is extremely narrow. Multiples are up strongly com- pared to this time last year.The sub sector revenue multiple closed out the period at 7.0x (up from 5.3x a year ago) while the EBITDA multiple ended up at 27.0x (up from 19.9x a year ago).

FOCUS U.S. Communications Service Provider Quarterly: Fall 2021 Report

2024-01-22T11:01:23+00:00Downloads, Industry Reports, Telecom Technologies & Services|

Public Markets

It was a rough three months for the FOCUS Communications Service Provider Index (CSPI) as it ended the period 6.2% below where it began. This significantly underperformed both the 0.2% gain in the S&P 500 and the 0.4% loss in the NASDAQ. The CSPI also lags the broader indices in terms of year-over-year performance as its 3.6% gain compares unfavorably with both the 28.1% gain in the S&P 500 and the 29.4% gain in the NASDAQ. Sector multiples are slightly higher than they were a year ago.The sector revenue multiple ticked up from 2.8x to 2.9x, while the EBITDA multiple increased from 7.9x to 8.2x.

FOCUS Telecom Business Services Quarterly: Fall 2021 Report

2024-01-22T11:01:23+00:00Downloads, Industry Reports, Telecom Technologies & Services|

Public Markets

After several periods of gains, the FOCUS Telecom Business Services Index (TBSI) slipped into the black with a loss of 0.5% over the past three months. In addition to its negative performance, the sub sector trailed the broader indices as the S&P 500 rose 0.2% and the NASDAQ dipped 0.4% over the same time period. Even with this period’s decline, performance for the full year remains strong. The TBSI is up 41.2% over the past 12 months, which handily outperforms both the 28.1% gain in the S&P 500 and the 29.4% gain in the NASDAQ. Sector multiples are also higher than they were in the year-ago period. The sector revenue multiple increased from 0.6x to 0.7x, while the sector EBITDA multiple rose from 7.4x to 9.2x.

VfD Technologies Case Study

2024-02-21T20:35:27+00:00Advanced Manufacturing, Case Studies, Downloads|

Three precision machining subsidiaries of VfD Technologies, Inc., a technology intensive manufacturer, have been acquired by ARCH Global Precision, a company that manufactures high-quality cutting tools and medical instruments. FOCUS initiated this transaction and advised VfD throughout the process. This case study highlights the unique process of this transaction.

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