White Paper: Valuing E-commerce Businesses As the Industry Booms
This white paper explores the discusses growth trends in e-commerce and what’s behind the recent growth. Additionally, we will examine recent trends in e-commerce company valuations, what’s driving them, and how companies are valued.
FOCUS Carrier-Focused Telecom Technology Quarterly: Winter 2021 Report
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
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
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
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
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.
White Paper: Understanding Investor Interest in Home Healthcare and Hospice
A must read for Home Healthcare and Hospice Agency Owners. We examine the key factors that have come together like a perfect storm to create the major industry consolidation currently underway. A unique window of opportunity now exists where eager buyers and motivated sellers can complete win/win deals. Private equity firms and strategic investors are interested in acquiring agencies to expand their home healthcare and hospice businesses at the same time sellers are dealing with the operational challenges created by the recent shift to the Patient Driven Grouping Model. This has led to a record level of deal activity during the first eight months of 2021.
White Paper: Can the U.S. Bring Semiconductor Manufacturing Back to its Shores (and Should It)?
It's no secret that the U.S. has lost millions of jobs over the last three decades, about five million jobs since 2000. The U.S. used to dominate manufacturing of cars, electronics, textiles and other products. Both low and high tech manufacturing jobs have been relocating to mostly Asian countries, especially China. Although this has been an important issue for decades, it has taken on added importance recently due to three main events ...
