Case Studies


  • COVID-19 State Reopening Tracker: Winter is Coming, and With It, Another Wave of New Coronavirus Cases October 1, 2020 – Capstone believes states removing restrictions on indoor gatherings, entering the fall season, will lead to a third wave of new COVID-19 cases by November, possibly coinciding with election day and hampering voter turnout. While we believe at least one vaccine candidate funded under Operation Warp Speed will ultimately be approved, we […]Learn More
  • Credit Acceptance: State AGs Likely to Push For ‘Ability to Repay’ Analysis, a Material Negative for Deep Subprime Business Model September 17, 2020 – Capstone believes state attorneys general (AGs), as part of their ongoing investigations into Credit Acceptance Corp.’s (CACC) business practices, will attempt to force the company to conduct an “ability to repay” (ATR) analysis before offering each loan. An ATR requirement would have a material negative impact on the company’s profitability and […]Learn More
  • Opioid Litigation: Walgreens, CVS, Rite Aid, Walmart Face $30-35B in Liability as Plaintiff Focus Shifts August 14, 2020 – Capstone believes the focus of state attorneys general and municipalities opioid litigation will shift to chain pharmacies—primarily Walgreens Boots Alliance Inc. (WBA), CVS Health Corp. (CVS), Rite Aid Corp. (RAD), and Walmart Inc. (WMT)—as opioid distributors and several opioid manufacturers resolve the majority of their outstanding litigation via a settlement by […]Learn More
  • Six Policy Catalysts Driving the Battery Storage Industry as the Presidential Election Nears June 9, 2020 – On June 8th, Capstone held a conference call exclusively for clients with the Energy Storage Association (ESA) to review the federal and state policy landscape and the probabilities of congressional action to extend clean energy tax credits. We recently wrote about likely tailwinds for the clean energy industry, including battery storage […]Learn More
  • Emerging Privacy Legislation and its Risks to a Healthcare Tech Company’s Business Model The Request: Capstone advised a client on the potential acquisition of a healthcare analytics company that paired bolstered, value-added overlays to healthcare provider contact data. Specifically, we analyzed regulation, legislation, and other government initiatives that could impact the company. Our diligence paid particular attention to the evolving landscape of amendments to the California Consumer Privacy […]Learn More
  • Business Opportunities in the Rapidly Growing Climate Adaptation and Resiliency Sector Our Call: Capstone first wrote in January 2020 that the nascent climate adaptation and resiliency sector will experience double-digit growth in the next five years, with sustained multiyear demand cycles. The increase in resiliency spending presents burgeoning opportunities for firms across a growing number of sectors, including the data, flood protection, materials, and engineering, procurement, […]Learn More
  • Puerto Rico’s Fiscal Woes and Financial Restructuring Our Call: Capstone first wrote in September 2013 that the Commonwealth of Puerto Rico faced significant financial risks given its dependence on federal funding to help finance its operations. In subsequent notes, we highlighted additional risks, including Puerto Rico’s propensity to overspend budgets and the sheer complexity of its capital structure. Our coverage led us […]Learn More
  • 340B Reform and the Risks to a Hospital-Based Specialty Pharmacy The Request: Capstone advised a client on the potential acquisition of a US company that provides 340B-focused retail and specialty pharmacy management. Our diligence focused on determining the likelihood, rationale, and impact of federal and state 340B reforms to the target company across a dozen specific issues, including: Medicare reimbursement cut for 340B scripts; Commercial […]Learn More
  • Fannie, Freddie, and the Long Path Out of Government Conservatorship Our Call: Since Capstone’s founding, our analysts have covered Fannie Mae (FNMA) and Freddie Mac (FMCC), the two government-sponsored enterprises (GSEs) placed in conservatorship in the height of the 2008 financial crisis. Before President Trump was elected in 2016, Capstone predicted that the new president, regardless of party, would present opportunities for the existing preferred […]Learn More
  • Federal Surprise Medical Bill Reform—Team Health and Envision Our Call: Capstone first wrote in December 2018 that federal surprise medical bill legislation—recently introduced in the US Senate—was likely to garner significant momentum in 2019 and pose a meaningful risk to physician staffing companies, particularly those with emergency department exposure such as Team Health Inc. (TMH) and Envision Healthcare Corp. (EVHC). The policy under […]Learn More