FOCUS Enterprise-Focused Telecom Technology Quarterly – Spring 2020

2024-01-22T10:59:48+00:00Downloads, Industry Reports, Telecom Technologies & Services|

Public Markets

While a 2.0% drop in the Focus Enterprise-Focused Telecom Technology Index (EFTTI) over the course of a three-month period would normally be considered disappointing, given the current environment for public equities it seems like a victory. This is highlighted by comparing it to the three-month drop in the S&P 500 of nearly 10%, and it also beats out the 2.9% decline in the NASDAQ over the same time frame. Sector performance is not as strong when measured over the full year period as the 11.9% decline in the EFTTI stacks up unfavorably compared to the 1.1% decline in the S&P 500 and the 9.8% gain in the NASDAQ. Sector multiples are also down significantly compared to this same time last year.The sector revenue multiple dropped nearly a full turn from 4.8x to 4.0x, while the sector EBITDA multiple fell from 20.3x to 16.6x.

White Paper: Private Equity Investment in Dermatology – April 2020 State of the Market

2024-01-22T11:00:22+00:00Downloads, Healthcare, White Papers|

After seven strong years, private equity investment in dermatology has been in decline since 2019. Now, elective procedure bans and shelter-in-place orders have practice owners wondering if the opportunity to sell has passed. This paper  examines  the differing views on pe-backed consolidation, key performance indicators, investor activity, and saturation by geography and practice size. We see several positive factors for our current and potential clients within a coming private equity player restructuring.

Insight and Perspective: Middle Market M&A Activity in the Current Environment

2024-01-22T10:59:48+00:00Blogs, Downloads|

It is no surprise that middle market M&A has not escaped the current economic crisis—as it is filled with companies across a wide array of industries that have been seriously impacted by the country’s abrupt slowdown. However, the effect has not been uniform across industry sectors and the stage in the process. Some sectors continue to press ahead while others have halted altogether. FOCUS Investment Banking has been asked by several partners to provide insight and perspective on the current state and future outlook for middle market M&A given the current market environment. FOCUS gathered the questions and then engaged with its team of over 40 bankers and senior advisors, across its ten industry practices, gathering responses to the questions posed.

FOCUS U.S. Communications Service Provider Quarterly: Spring 2020 Report

2024-01-22T10:59:47+00:00Downloads, Industry Reports, Telecom Technologies & Services|

Public Markets

Not surprisingly given the current state of the public markets, it was a challenging three-month period for the FOCUS Communications Service Provider Index (CSPI). The sector plummeted just shy of 20% over this time frame, which was roughly in-line with the 20.0% drop in the S&P 500 but greater than the 14.2% drop in the NASDAQ over the corresponding time frame.The situation looks a bit better when measured over the full year period.The CSPI was down only 9.3% in the past 12 months, although once again this underperforms both the S&P 500 (down 8.8%) and the NASDAQ (down 0.4%). Sector multiples are lower than they were in the year-ago period, although the drop is not as dramatic as we might have feared.The sector revenue multiple dipped from 2.7x t0 2.5x, while the sector EBITDA multiple fell from 8.0x to 7.2x.

FOCUS Telecom Business Services Quarterly: Spring 2020 Report

2024-01-22T10:59:46+00:00Downloads, Industry Reports, Telecom Technologies & Services|

Public Markets

Unfortunately the FOCUS Telecom Business Services Index (TBSI) was not immune from the storm that hit the capital markets this period. The sector plummeted 27.2% over the past three months, which significantly underperformed both the 20.0% drop in the S&P 500 and the 14.2% drop in the NASDAQ over the corresponding time period. The situation is similar for the full year period as the 9.1% drop in the TBSI was greater than the 8.8% and 0.4% drops in the S&P 500 and NASDAQ, respectively. Interestingly, the sector revenue multiple held steady compared to this same time last year at 0.4x. However, the EBITDA multiple for the sector fell precipitously from 9.2x a year ago to 6.6x currently.

A2Z Manufacturing: Is This the Competitor You Should Really Be Worrying About?

2024-01-22T10:58:30+00:00Advanced Manufacturing, Articles, Downloads|

Merger and acquisition activity has accelerated in the precision machining industry due to the confluence of three fundamental technological and market forces.

  • Large capital inflows from private equity funds
  • Automated, digital manufacturing processes
  • Digital integration of the supply chain
The capital required to simply stay competitive is likely to soon leave a substantial portion of the industry field behind. The average firm owner may not yet have felt a serious impact, but complacency about the changes underway will threaten the competitive position of many industry participants and can have a serious impact on the equity they have taken years to build. Owners must recognize and confront pro-actively the building pressures for exploring a non-organic growth model. 

FOCUS Carrier-Focused Telecom Technology Quarterly: Spring 2020 Report

2024-01-22T10:59:46+00:00Downloads, Industry Reports, Telecom Technologies & Services|

Public Markets

Our Spring 2020 report marks a full year of reports where the Carrier-Focused Telecom Technology Index (CFTTI) delivered a negative return for the three-month period. In this case the sector was down 6.9% over the past three months. The broader indices are also down over this time frame, although not as steeply. The S&P 500 lost 6.0% over this same period, while the NASDAQ only dropped 1.1%. The situation for the full year is even more discouraging as the CFTTI is down 17.0% year-over-year while the S&P 500 and NASDAQ are up 6.1% and 13.7%, respectively. Sector multiples have also dropped significantly compared to this same time last year. The sector revenue multiple dropped from 2.5x to 2.1x, while the sector EBITDA multiple fell from 14.9x to 10.6x.

FOCUS Enterprise-Focused Telecom Technology Quarterly – Winter 2020

2024-01-22T10:59:45+00:00Downloads, Industry Reports, Telecom Technologies & Services|

Public Markets

After a disappointing fall report, the Focus Enterprise-Focused Telecom Technology Index (EFTTI) underwent a modest bounce back in our winter reporting period with a three-month gain of 3.3%. While it was certainly good to see the EFTTI back in positive territory, the index still trailed the 6.2% gain in the S&P 500 and the 10.4% gain in the NASDAQ by a fairly wide margin.The situation is similar for the twelve-month period, where the 6.2% year-over-year gain in the EFTTI compares poorly with the corresponding gains of 19.3% and 25.7% in the S&P 500 and NASDAQ, respectively. On a more positive note, we did see that sector multiples are higher than they were at this same time last year.The sector revenue multiple increased from 4.0x to 4.3x, while the sector EBITDA multiple went from 16.9x to 17.8x.

White Paper: Private Equity Investment in Gastroenterology – 2020 Outlook

2024-01-22T11:00:20+00:00Downloads, Healthcare, White Papers|

Is gastroenterology the next darling of private equity? Large GI practice acquisitions exploded in 2019, tripling that of the prior three years. Expansion to new geographic areas doubled in each of the last three quarters of 2019. We see this activity accelerating in 2020 when a significant number of new private equity investors enter the market and physician sellers see high demand for their practices.

White Paper: Private Equity Investment in Ophthalmology – 2020 Outlook

2024-01-22T11:00:20+00:00Downloads, Healthcare, White Papers|

Private equity investment in ophthalmology practices has been one of the "hottest" sectors in M&A over the last several years. We believe the market will continue to be strong but our key indicators now signal a transition to Network Growth in 2020 – a more mature phase characterized by consistent add-on acquisitions. There are still open geographies with great opportunity, such as Texas and multiple areas on the West Coast. We project increased deal activity in these areas including large platform acquisitions.

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