FOCUS Investment Banking, a national middle market investment banking firm providing merger, acquisition, divestiture, and corporate finance services, announced today that HL Precision Manufacturing, Inc. (HL) with facilities in Champaign and Fisher, Illinois, and Hi-Grade Welding & Mfg, LLC (Hi-Grade) based in Schaumburg, Illinois, have combined by creating a common parent company to be known as H3 Manufacturing Group, LLC.
As many FOCUS colleagues know, the firm celebrated its third consecutive record-breaking year in 2018, closing 28 deals across 10 industry segments. As we approach the first half of 2019, we continue to demonstrate our proven expertise, both across the wide range of sectors we cover, and in the depth of strategic services we deliver on behalf of our clients. Plus, first quarter 2019 results prove dealmakers see plenty of solid reasons for optimism for the remaining three quarters.
FOCUS Investment Banking, a national middle market investment banking firm providing merger, acquisition, divestiture, and corporate finance services, announced that Accumark, Inc., Pipe Vision, LLC, and Benchmark VA LLC Subsurface Utility Services (collectively “Accumark”) have been acquired by Hoffman Southwest (HSW), a rapidly growing portfolio company of ORIX Capital Partners, that provides water flow inspection, repair, and cleaning services. FOCUS represented Accumark, Inc. in this transaction.
In public markets, the FOCUS Enterprise-Focused Telecom Technology Index (EFTTI) turned in a stellar reporting period this spring with a three month gain of 17.3%. Gains were broad-based as every single sub sector in the index was in positive territory for the period. In addition, the gains in the EFTTI handily outperformed the broader indices as the S&P 500 was up 8.9% and the NASDAQ was up 11.2% over the corresponding time frame. The story is similar for the full year period, where the EFTTI’s year-over-year increase of 23.7% compares favorably with both the 11.3% gain in the S&P 500 and the 14.6% gain in the NASDAQ. The sector has benefited from meaningful multiple expansion over the past year. The sector revenue multiple ended the period at 4.9x (up from 4.0x a year ago) and the sector EBITDA multiple ended the period at 20.5x (up from 16.5x a year ago).
In Public Markets, after a weak performance in our winter report, the FOCUS Communications Service Provider Index (CSPI) bounced back nicely to post a double digit gain of 10.2% in the last three months. Gains were broad-based, as all but one of the CSPI’s five sub-sectors posted a positive return.
The 30th M&A Worldwide Rainmaker LISBON Summit, held April 4-5 in Lisbon, Portugal included 278 people from 40 countries—breaking all previous attendance records for the prestigious event.
Like the MIAMI Summit hosted by FOCUS in November 2018—as well as previous Summits in Amsterdam, Barcelona, London, New Delhi, Warsaw, and Shanghai—the LISBON Summit united corporate deal makers from across the globe, stimulating discussion around ongoing transactions, as well as the latest trends in research, deal software, and process management.
In this Issue:
The latest issue of the FOCUS Government, Aerospace, and Defense Group Report — highlighting aerospace and defense — is now available. The new GAD Report includes:
- IT Market Analysis— Performance: S&P 500 vs. IT
- Company Comparables
- Information Technology Transaction Volume
- M&A Activity in the IT Sector: Selected Transactions
- Recently Closed Transactions
- Major Q1 2019 Deals in the GAD Sector
- Performance: S&P 500 vs. GAD
- GOVERNMENT Sector Q1 2019
- AEROSPACE Sector Q1 2019
- DEFENSE Sector Q1 2019
- Selected GAD Transactions Q1 2019
- M&A Activity in the GAD Sector
- Recent FOCUS GAD Transactions
Featured in this Issue
Elderly Home Care Goes Digital
Supplied by Community Research and Development Information Service (CORDIS), European Commission, May 31, 2018*
For the elderly with cognitive impairment, living alone can prove detrimental to their health. Assistance services can provide appropriate discreet support for independent living and a high life quality.
In public markets, the FOCUS Telecom Business Services Index (TBSI) roared back after a disappointing winter reporting period to post a strong gain in the spring. The sector was up 14.7% in the last three months, which outperformed the 13.1% gain in the S&P 500 but trailed the 16.5% gain in the NASDAQ over the corresponding time period. For the 12 month period, the sector is up 17.2%. This gain handily outperformed gains in the S&P 500 and NASDAQ of 7.3% and 9.4%, respectively. Sector multiples ended the period at levels that were roughly consistent with this same time last year. The sector revenue multiple remained unchanged at 0.4x, while the sector EBITDA multiple ticked up slightly from 8.7x to 9.2x.