Research Reports & Industry Newsletters

Cherry Tree conducts proprietary research through its investment banking and private equity investment activities. Specific investment themes drive much of our activity.

Cherry Tree also produces e-newsletters in the following industry sectors: Technology Enabled Business Services, Education For-Profit and Information Technology Services.

If you are interested in receiving a copy of a report listed below or be added to our distribution list for one of our e-Newsletters, please fill out the form to the right and indicate which report or newsletter you are interested in receiving.

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Cherry Tree Reports on The Building Services Industry

Building Products Industry

In Cherry Tree’s industry research report, “Building Products industry, Q1 2016,” we provide a high level review of the Building Products industry and its major segments including:

  • Distributors
  • Home Builders
  • HVAC
  • Roofing, Siding & Installation Windows & Doors
  • Plumbing & Cabinetry
  • Floors & Surfaces
  • Lumber & Wood Products
  • Cement, Concrete & Aggregates

Cherry Tree Reports on Media and Marketing Services

Media and Marketing Services

 Cherry Tree’s industry research report, “Q2 2016 Media and Marketing Services: The Growing Importance of Engagement,” discusses the very different problems faced by legacy and digital media, and suggests an important new factor needed to drive business success in the industry. The report also contains insightful quick snapshots of nine industry segments of most interest to Cherry Tree’s clients and investors.

Cherry Tree Reports on Technology Enabled Business Services

Technology Enabled Business Services

 Cherry Tree’s research report on the Technology Enabled Business Services (TEBS) industry explores trends and activity in the space, including valuations and business model advantages for these types of companies. There are four main TEBS segments identified in the report: Software, Business Process Services, Information Services and Infrastructure Services.

Cherry Tree Reports on Information
Technology (IT) Services 

Information Technology Services

Cherry Tree’s industry research report, “Q3 2015 Information Technology Services” contains an overview of the IT services industry and its major segments. The report outlines the typical buyers as well as the value drivers, the valuation metrics, and the M&A outlook for this dynamic, competitive, and exciting industry.

Research Reports

INFORMATION & EDUCATION

Cherry Tree’s research report on the Technology Enabled Business Services (TEBS) industry explores trends and activity in the space, including valuations and business model advantages for these types of companies.

There are four main TEBS segments identified in the report: Software, Business Process Services, Information Services and Infrastructure Services. Each segment has its own unique business model advantages and key trends, and this report addresses those ideas and the ways that TEBS companies can take advantage of these trends and create value for their customers and themselves.

The report also introduces the TEBS 100, an index of 100 publicly-traded TEBS companies. The TEBS 100 has consistently outperformed the S&P 500 in terms of revenue growth and profitability, and has therefore been rewarded with premium valuations and stock market outperformance.

Companies in the business of providing IT outsourcing,
staffing, consulting, systems integration and more.

Cherry Tree’s industry research report, “Q3 2015 Information Technology Services” contains an overview of the IT services industry and its major segments. The report outlines the typical buyers as well as the value drivers, the valuation metrics, and the M&A outlook for this dynamic, competitive, and exciting industry.

Product and service companies providing critical resources to public and private schools in support of teaching and learning.

In this past year, the PreK-12 market shined brightly as an attractive opportunity for investors, be they venture capitalists, private equity firms, or strategics (those businesses already active in the segment). As a much smaller market than postsecondary, with a more challenging sales environment, PreK-12 for years had a reputation as a place to do good, not necessarily to do well.

Legacy and digital media, marketing services
and companies that support the industry.

Cherry Tree’s industry research report, “Q2 2016 Media and Marketing Services: The Growing Importance of Engagement,” discusses the very different problems faced by legacy and digital media, and suggests an important new factor needed to drive business success in the industry. The report also contains insightful quick snapshots of nine industry segments of most interest to Cherry Tree’s clients and investors, and it includes valuation metrics for public companies as well as useful comparables for selected recent transactions in this space.

MEDTECH

The healthcare industry’s $188 Billion Med-tech sector develops life-saving and life-enhancing products and remains a vital and dynamic contributor to the U.S. economy.

Following a pause in investment activity and a period of capital drought in the healthcare industry, the Med-tech sector is now poised to outperform the overall market. Key to this new found level of energy and optimism is the healthcare reform uncertainties behind a strengthening economy, the rising influence of informed data-empowered patients, and a general optimism from industry leaders on the near term future of the healthcare industry.

The hyperactive $7.4 billion market segment that provides electronic medical record software and services to the healthcare industry.

The North American electronic medical records (EMR) industry represented $7.4 billion in 2010 revenues and is expected to continue to grow 9.7% annually. While there are 12 companies with revenues greater than $100 million, it remains a highly fragmented industry overall with approximately 420 companies.

INDUSTRIAL, DISTRIBUTION & FOOD

Technology innovators impacting the energy supply chain in generation, infrastructure, storage and efficiency.

Energy Innovators are rapidly transforming the landscape of the global energy balance. Technology and supply systems are now in place to generate cleaner and more efficient energy; however, the clean technology sector requires additional investment to move to the next growth phase. Growth in the sector is driven by capacity constraints, global demand, consumer concerns and governmental regulatory support.

Participants responsible for refining, processing, packaging, transporting, and preparing food and non-alcoholic drinks.

The Food & Beverage industry in the United States spans a broad and complex network that bridges farmers to consumers. Participants in the industry are responsible for refining, processing, packaging, transporting, and preparing food and non-alcoholic drink offerings for ultimate sale to consumers. Their profiles range from global commodities enterprises and consumer driven packaged goods companies to simple family operated restaurants.

Manufacturers of dry baking mixes, frozen batters and dough, frozen par-baked goods, and frozen thaw-and-serve offerings for sale to bakery and foodservice outlets.

The manufacture of value-added bakery products for sale into supermarket in-store bakeries, traditional retail bakeries, and foodservice outlets is an estimated $17 billion industry. Commodity cost increases drove multiple pricing actions by manufacturers in 2008, benefiting the top-line for the industry even with the volume pressure driven by changes in consumer spending.

The rapidly restructuring and consolidating $200 billion market that includes commercial equipment rental companies and agricultural equipment, construction equipment, and commercial truck dealerships.

Our research suggests that there are approximately 7,500 equipment rental companies and 10,100 commercial equipment dealerships in North America, when combined account for just under $200 billion of annual revenue.

The enclosed report focuses on the Building Products industry. In this report, we provide a high level review of the Building Products industry and its major segments including:

* Distributors
* Home Builders
* HVAC
* Roofing, Siding & Installation
* Windows & Doors
* Plumbing & Cabinetry
* Floors & Surfaces
* Lumber & Wood Products
* Cement, Concrete & Aggregates

We discuss the macro-economic drivers of the industry, public company valuation metrics, M&A valuation metrics, and the M&A outlook for this dynamic industry. The report also includes Cherry Tree’s Building Products Performance Index.

STRATEGIC ADVISORY

A proactive approach to identifying acquisition opportunities that strategically align with the buyer’s core business.

Successful companies proactively pursue acquisitions in an effort to augment organic growth initiatives. This is especially true today with market pressures from a slowly recovering economy and heightened scrutiny from the investor community.

The opportunity for corporate leaders to redirect time and resources to the strategic core through a quick
and quiet sale of non-core business units.

Proactive and routine business assessment is a key part of a successful growth strategy. Such a process offers corporate leaders the opportunity to challenge the strategic fit offered by a division, business unit, or operation and determine how each contributes to achieving the overarching corporate vision.

Going public using the reverse merger structure in combination with proven public company builders.

The Sponsored Reverse Merger (“SRM”) is a proven and well-accepted, alternative method of going public. It provides a private growth company’s founders and investors with an efficient way of raising capital and elevating awareness for their companies, while developing some realizable liquidity paths for their shareholders.

A strategic framework to ignite and sustain growth amid difficult economic conditions.

This report defines the challenges of difficult economic conditions, delineates winning strategies, and outlines a framework for how to ignite and sustain growth and emerge much stronger from a downturn.

An analysis framework to evaluate and prioritize various growth opportunities.

This report Outlines a rigorous analysis to evaluate and prioritize various growth opportunities, whether strategic or opportunistic.

ADVISORY— MAXIMIZING YOUR GAIN

Provides insights and best practices for preparing to sell a middle-market company including the rationale for selling and how to properly prepare for a transaction that will maximize the owner’s value.

Explains the various methodologies of how different categories of buyers typically value a company and describes the details how comparables analysis works so sellers can be fully informed.

Explains the various types of exits and exit process, including various market approaches, targeting potential buyers, communications, marketing materials, and due diligence. Includes various methods of structuring the sale, including types of transactions, typical tax considerations, and common forms of financial consideration for sellers, along with negotiation tips and tactics.

Industry E-Newsletters

TECHNOLOGY ENABLED BUSINESS SERVICES (TEBS)

The TEBS e-newsletter is focused on the Technology Enabled Business Services (TEBS) space. Cherry Tree segments the TEBS space into four segments: Software, Business Process Services, Information Services and Infrastructure Services. Each issue of the newsletter highlights transactions involving TEBS companies and spotlights a member company of the TEBS 100, Cherry Tree’s index of publicly traded TEBS companies. TEBS 100 performance metrics are tracked and published in each edition of the e-newsletter.

EDUCATION FOR-PROFIT MONTHLY

The Education For-Profit monthly e-newsletter monitors M&A, financings, and valuations in the Pre-K-12, Postsecondary, Corporate Training, and Education Products and Services Providers segments. For-profit education currently comprises more than 10% of the roughly $1 trillion that is spent on education in the U.S. annually, and this percentage is growing. Cherry Tree created the Education For-Profit 50 Index representing a group of publicly traded for-profit education companies.

INFORMATION TECHNOLOGY SERVICES

The IT Services monthly e-newsletter provides updates on key industry developments and M&A activity on a monthly basis for companies in the business of providing consulting, outsourcing, staffing and systems integration solutions. Cherry Tree created the IT Services index, to monitor and report on financial metrics for the industry and its key segments.