Case Studies


  • 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
  • Public Funding for Pre-K and its Risks and Opportunities in a For-Profit Provider’s Business Model The Request: Capstone advised a client on the potential acquisition of a for-profit early childhood education provider. Specifically, we evaluated the key policy-driven risks and opportunities arising from public funding for pre-K programs. Our diligence focused on both federal and a selection of states’ policies. We also provided the client with a scenario analysis based […]Learn More
  • Assessing Potential Deutsche-Commerzbank Merger, Wary About Merits of “National Champion” Our Call: On March 14, 2019, Capstone hosted a series of meetings for clients in Frankfurt to discuss the outlook for the German big bank M&A with regulatory and industry stakeholders. Our conversations focused heavily on banking consolidation and the broad sense of skepticism around the merits of creating a “national champion” given the merger […]Learn More
  • Evolving State and Federal Regulatory Climate Surrounding Branch-Based Installment Lending The Request: Capstone was engaged by a consortium of private-equity sponsors that was considering acquiring a branch-based installment lender. Specifically, we analyzed existing and potential future legislative and regulatory initiatives that could affect the Company. At the state level, we explored the climate in the nine states that constitute the majority of the Company’s branches. […]Learn More
  • Utility Special Situation—SCANA Our Call: Capstone published that shares of South Carolina utility SCANA (SCG) presented an attractive risk-reward after a significant sell-off in the shares appeared to price in an unlikely worst-case regulatory outcome.  We believed state regulators were likely to punish the company for its mismanagement of the nuclear reactor project, but believed ultimately they would […]Learn More