Third-Party Logistics (3PL) Company Valuations – December 2023 The logistics industry has evolved rapidly since 2020. From a global pandemic and broad shift of consumer spending to e-commerce to the supply chain disruption caused by the war in Ukraine and the rise of inflation and interest rates, the industry has innovated in order to maintain its competitiveness. These changes have been matched by the volatility in the valuations of 3PL companies and their financial performance. This article will discuss the factors that may have impacted valuations at the end of 2023. This article updates ..read more

Cybersecurity Software Companies – December 2023 Update Valuations of cybersecurity software companies rose precipitously over the several years leading up to 2020 and 2021. However, valuations subsequently declined through the end of 2022 and into the end of 2023. This article will examine some of the trends currently impacting the valuations of publicly-traded cybersecurity software companies. This article updates our June 30, 2022 analysis. Important notes: This article examines potential driving factors for cybersecurity software company valuations from a financial statement perspective ..read more

Building Product Distributor Valuations – June 2023 The broad building products sector has experienced improving financial performance and growing valuations over the last several years. High customer demand, rising prices, and elevated merger and acquisition activity fueled this recent growth. Valuations contracted in 2022, but resumed its growth trajectory in June 2023. This article will examine some of the factors that appeared to impact the valuations of building product distributors. Important notes: This article examines potential driving factors for publicly-traded building product di ..read more

Aerospace Parts Company Valuations – June 2023 Following an increase in valuations in 2021, enterprise values for publicly-traded aerospace parts companies declined through the end of 2022. Valuations of these companies were flat overall. However, as will be discussed in this update, changes in valuations between December 2022 and June 2023 varied wildly by industry constituent. We will further examine some factors that appeared to have impacted valuations. Important notes: This article examines potential driving factors for aerospace parts company valuations from a financial statement persp ..read more

Beauty Product Company Valuations – June 2023 The beauty industry has undergone significant change over the last several years. McKinsey’s The Beauty Market in 2023: A Special State of Fashion Report shows that the overall beauty and personal care market value generated approximately $430 billion in revenue in 2022 and is expected to reach $580 billion by 2027, or a 6% per year average growth rate. Consumer surveys continue to indicate that a large portion of prospective customers in China, France, Germany, Italy, the U.K., and the U.S. enjoy trying new brands. These preferences, along with ..read more

Equipment Rental Company Valuations – June 2023 The equipment rental industry saw sharp increases in financial performance and valuation since a modest retraction in 2020. These increases have been generally consistent across all publicly traded equipment rental companies through June 2023. This article will examine some of the factors that appeared to impact the valuations of equipment rental companies. Important notes: This article examines potential driving factors for publicly-traded equipment rental company valuations from a financial statement perspective. An actual business valuation ..read more

Recruiting and Staffing Company Valuations – June 2023 The recruiting industry has seen wild swings in hiring trends over the last few years. The Great Resignation in 2021 was followed by the War for Talent, and then the tech layoffs of 2022 and 2023. Current concerns seem to revolve around slowing economic growth and general market uncertainties. Looking forward, some have identified a new trend: “labor hoarding,” which has seen companies retaining as much of their existing workforce as possible despite economic headwinds. This may create some overcapacity within companies that reduces dema ..read more

Full-Service Restaurant Valuations – December 2022 Valuations of the publicly-traded full-service restaurant players were volatile between June 2021 and June 2022. We noted a substantial increase in valuations in excess of financial performance in June 2021 followed by a pullback in valuations by December 2021 (though valuations remained higher than in December 2020). By the end of 2022, valuations had declined further. This article will examine some of the factors that appear to have impacted the valuations in the industry. This article updates our June 2022 analysis. Important notes: This ..read more

Surgical Instrument & Device Company Valuations – December 2022 Surgical instrument and device companies experienced a significant but short-lived downturn in financial performance during the height of the pandemic but subsequently resumed their growth trajectory. Demand for elective surgeries accumulated during the pandemic, driving a swift recovery for companies in this industry sector. Valuations continued a steady climb through the end of 2021 but have since declined in 2022. This article will explore some of the trends that appear to impact the valuations of publicly-traded surgical ..read more

Building Product Distributor Valuations – December 2022 The building products industry has experienced improving financial performance and growing valuations over the last several years. High customer demand, rising prices, and elevated merger and acquisition activity fueled this recent growth. However, valuations declined from December 2021 to December 2022 as expectations of an economic contraction grew, and investor sentiment toward the broad equity markets deteriorated. This article will examine some of the factors that appear to impact the valuations of building product distributors. Se ..read more