Harris Williams Industrial Technology Introduction
Harris Williams (“HW”)
- 25+ years and more than 1,000 closed transactions
- 350+ professionals across eight office globally
- 170+ closed transactions in the last 24 months
- 10 industry groups
Focused Advisory Services
- Mergers and acquisitions (M&A)
- Capital raises
- Corporate divestitures
- Industry insights and knowledge
- Valuation
- Strategy and negotiation
Consistent Recognition for Quality
Harris Williams Efforts in Industrial Technology
- Dedicated sector coverage as part of Harris Williams’ broader Industrials practice
- Global team of senior professionals in Richmond and Frankfurt
- Focus on high technology / engineering content that provides mission critical value relative to broader systems
- Extensive execution experience and proven ability to understand complex technology-oriented companies
Industrial Technology Focus Sectors
- Automation
- Test & Measurement
- Communication & Connectivity
- Engineered Components
Harris Williams Current Market Observations and Insights
Current Market Observations
Economic Outlook
- Volatility in the public markets will likely remain as investors, businesses and policymakers evaluate rapidly evolving trends in the wake of COVID-19.
- Economists and industry analysts expect improvement in the back half of 2020 as economies begin to reopen, while uncertainty remains around the shape and magnitude of the recovery amidst a resurgence of COVID-19 infections.
Buyer Sentiment
- Private equity firms and strategic acquirers have been focused on meeting near-term operational needs and assessing the medium- to long-term impact of COVID-19.
- Despite economic uncertainty, the desire to invest remains–financial sponsors have record levels of capital to deploy, and many are communicating that they are “open for business” while acknowledging high-quality deal flow will be limited.
- As capital markets stabilize, companies with strong liquidity positions will be well positioned to pursue acquisitions of complementary and adjacent technologies that accelerate growth.
Debt Markets
- Debt markets have shifted to a risk-off mentality, with lenders prioritizing incumbent credits and relationships, greater receptivity for smaller deals (e.g., add-ons), and increased pricing across the board.
- Concerns over liquidity and funding availability for companies contribute to ongoing uncertainty regarding the duration of the effects of COVID-19 on the debt markets.
M&A Valuations
- COVID-19 has delayed exit timing for many companies, but select deals are still closing successfully. Although a number of transactions remain on hold, an increasing number are preparing for market and carefully weighing timing.
- Although the valuation landscape has yet to fully settle since the start of COVID-19, high-quality companies remain attractive and will continue to command a premium given their ability to weather, and/or benefit from, a post-pandemic economy.
Deep Sector Expertise and Execution Excellence
- Harris Williams has a proven ability to understand complex technology-oriented companies and position the nuances to deliver benchmark valuations.
- Extensive experience and valuable insights from our dedicated global team provide real-time market insights from hundreds of touch points across the world and the firm.
- Our professionals have a unique understanding of how to navigate and execute successfully amidst an unprecedented market environment.
Latest Harris Williams Market Insights
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Industrial Technology Content and Resources
- Smart City Opportunities
- Market and Sector Observations
- Industrial Technology Update
- Industrial Software Update
- Industry Conferences
- Industrial Sensor Platforms
Smart City & Mobility Tech Market at a Glance
Serving the Entire Smart City and Mobility Tech Market Across Harris Williams’ Global Footprint
Sources: McKinsey, Roland Berger, EY, Technavio, HW Intelligence
Long-Term Smart City & Mobility Tech Market Drivers
Intelligent Transportation Systems (ITS)
- Increased investment in intelligent, adaptive ITS solutions over traditional infrastructure expansion reduces congestion, real economic costs and environmental impacts.
- Continued support for “greener” and pedestrian-friendly solutions drives innovation across public and private modes of transportation.
- Proliferation of autonomous/connected vehicle technologies requires more robust sensor content, communication infrastructure and data analytics capabilities.
Building Automation
- Accelerated adoption of building information modeling (BIM), life safety solutions and communication technologies facilitates the design and operation of more efficient, secure and connected buildings.
- Remote monitoring and automation of environmental conditions and utility usage reduces occupancy costs and increases energy efficiency.
- Machine intelligence and biometric technologies provide actionable insights amidst massive and growing volumes of data.
Smart Infrastructure
- Real-time data analysis, sensors and communication technologies help address increased demand for safety and environmental monitoring.
- Long-term demand for efficient, sustainable and reliable critical infrastructure/public services across waste, water and power drives continued innovation.
- Rollout of 5G coverage and small-cell networks deliver necessary connectivity for vehicle-to-infrastructure (V2I) and pedestrian applications across public spaces.
Mobility Information and Control
- Rapid growth in e-commerce and subsequent shipping and freight volumes require comprehensive asset tracking capabilities to optimize supply chains and limit risk of theft, damage or loss of product.
- Mass adoption of video telematics across public and private fleets help reduce operational and maintenance costs and increase driver safety.
- Increased utilization of sensors and centralized software platforms delivers real-time tracking, monitoring and life-cycle management of industrial equipment and processes.
Increased adoption of smart city technology presents a $2.5 Trillion market opportunity by 20252
Subsector Deep Dive: Intelligent Transportation Systems (ITS)
Intelligent Traffic Management
- (Arterial) Traffic Management Systems
- Traffic Data Services
- Transportation Planning & Optimization Software
- Vehicle & Bicycle Detection
Public Transportation
- Automated Vehicle Identification
- Public Transit & Passenger Tracking
- Tolling Hardware & Systems
- Fare Collection
Smart Parking
- Parking Guidance Systems
- Payment Solutions
- Enforcement Guidance
- Data Collection Software
- Access Control
Connected Vehicles
- Roadside & Onboard Units
- Small-Cell & Backhaul Technologies
- Collision Avoidance Sensors
- V2X Hardware & Software
- Connected Intersections (Controllers)
Emerging Trends Across the ITS landscape
Adaptive Traffic Signal Control
Optimizes arterial traffic signal infrastructure in real time through demand-based adaptive signal control
Contactless/Open Payments
Increases the efficiency, safety and hygiene of public transit operations
Parking Enforcement Technologies
Compliance and violation monitoring solutions increase revenue and ensure adequate parking availability
V2X Infrastructure
Increased demand for V2X systems and sensors to ensure success of autonomous mobility
Advanced Detection & Sensors
Innovative and integrated technologies critical for overall safety and system effectiveness
Dynamic Pricing for Tolling
Designed to reduce congestion and boost revenue in high-traffic corridors
Touchless Parking
Touchless access control and payment systems enhance lot management efficiency
Communication Infrastructure
Small-cell technologies offer increased data capacity with lower latency
Real-Time Data Collection & Analysis
Provides ability to dynamically respond to traffic inefficiencies and emergencies
Flat-Rate Mobility Subscriptions
Provides customers access to various mobility services via a single platform at a fixed price
Smart Mobile, Data & Payment Apps
Seamlessly improve efficiency in finding, reserving and paying for parking
Cybersecurity & Data Privacy
Software solutions to protect against cyberattacks on vehicles and critical infrastructure
Sources: Markets and Markets, HERE Mobility, McKinsey, HW Intelligence
Increasing M&A Momentum Across the Smart Mobility and ITS Subsector
Select Notable Intelligent Transportation Systems M&A Activity
Intelligent Traffic Management Systems Landscape
To receive the latest Industrial Technology market maps, please contact Harris Williams at HWIndustrialTechTeam@harriswilliams.com
Smart Parking Landscape
To receive the latest Industrial Technology market maps, please contact Harris Williams at HWIndustrialTechTeam@harriswilliams.com
Public Transportation Management Landscape
To receive the latest Industrial Technology market maps, please contact Harris Williams at HWIndustrialTechTeam@harriswilliams.com
Intelligent Transportation Systems Public Market Observations
Intelligent Transportation Systems Market Valuations4
Select HW Intelligent Transportation Systems Case Studies
Description
- Leading provider of intelligent traffic solutions to state and local governments across the U.S. and select countries around the world.
- Offers a fully integrated, innovative suite of software, internet of things (IoT) and hardware solutions providing customers with enhanced mobility and improved safety.
Key Investment Thesis
- Ability to leverage Trafficware’s intelligent, data-rich intersection-management technology to support next‐generation ITS solutions and diversify Cubic’s revenue stream.
Description
- Leading provider of end-to-end, cloud-based parking management solutions for off- and on-street parking
- Offers a SaaS platform for parking management, enforcement, Parking Access and Revenue Control Systems (PARCS), payment processing, vehicle counting and event management, complemented by a suite of revenue-control hardware solutions.
Key Investment Thesis
- Highly entrenched customer base consisting of municipalities, universities, hospitals and transit systems, providing long-term organic growth opportunities.
Description
- Leading traffic safety platform serving large, global base of customers across 90 countries with 20 manufacturing facilities and sales offices on five continents.
- Strong market position across an array of intelligent traffic components, including conflict-monitoring devices, inductive loop detectors and pavement-marking applications.
Key Investment Thesis
- Diverse base of long-term customer relationships with stable recurring demand and highly customized products, offering attractive financial profile and compelling M&A platform.
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