Capstone Headwaters

BUILDING PRODUCTS &

TABLE OF CONTENTS


Introduction
M&A Activity
 Middle Market Index
 Public Market Summary
 Construction Input Pricing
 Construction Market Dynamics
 Remodeling Market Index
 Architectural Billings Index
 Construction Outlook
 Construction Backlog
 Concluding Thoughts
CONTRIBUTORS
Darin Good
Managing Director
303-549-5674
dgood@capstoneheadwaters.com
CONSTRUCTION MATERIALS
Q1 2018
INTRODUCTION
This report provides insight into mergers & acquisitions (M&A), capital market
activity, and market dynamics in the Building Products & Construction Materials
market through the first quarter of 2018.
Capstone Headwaters’ Building Products & Construction Services team advises
business owners, entrepreneurs, executives and investors in the areas of
mergers and acquisitions, capital raising, and various special situations. The
team focuses exclusively on building products, construction materials and
construction services and understands the nuances associated with these
industries. Due to our background and laser-focus, Capstone Headwaters is
uniquely qualified and has an unparalleled track record of successfully
representing the shareholders of:

Brian Krehbiel  Manufacturers of building products or construction materials;

Senior Vice President  Distributors of building products or construction materials;
303-531-5008  Contractors or sub-contractors; and
bkrehbiel@capstoneheadwaters.com  Professional services firms, architectural, engineering, testing, etc.

Crista Gilmore
Vice President HIGHLIGHTS
303-531-5013
cgilmore@capstoneheadwaters.com  The Building Products & Construction Materials market has outperformed
the broader M&A market over the last year.
Dominic Cervi  US commercial construction activity is on the rise and the South has seen the
Associate strongest growth.
303-531-4605
 The 12.7% year-over-year decrease in Building Products & Construction
dcervi@capstoneheadwaters.com
Materials transactions was muted compared to the 20.5% decline in the
Zach Schultz
broader M&A market transaction volume.
Analyst  Middle market M&A is expected to grow in 2018.
303-951-7126
zschultz@capstoneheadwaters.com

3
www.capstoneheadwaters.com May 2018
 Building Products & Construction Materials | Q1 2018

M&A ACTIVITY

M&A activity in the Building Products & Construction Materials industry rebounded in Q1 2018, following a declining trend
in 2017. There were 322 transactions in the industry in 2017—12.7% less than in 2016.

The year-over-year decrease in Building Products & Construction Materials transactions was muted compared to the 20.5%
decline in broader M&A market transaction volume.1

M&A Activity: Building Products & Construction Materials

120 102 107
99 95 97
100 88 90 92 88 93
84 85 81 86 84
79 75
80 70 67 69 64
60
40
20
0
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1

2013 2014 2015 2016 2017 2018

Source: Capital IQ

Notable Q1 2018 Transactions

Beacon Roofing Supply, Inc. acquired Allied Building Products

Has Acquired Corp. from CRH plc on January 2, 2018 for $2.6 billion. Allied
Building Products Corp. is one of the country’s largest exterior
building products distributors. The acquisition expands Beacon’s
geographic footprint in New York, New Jersey, and other major
US markets.

Owens Corning acquired Paroc Group on February 5, 2018 for

Has Acquired nearly $1.1 billion. Paroc is a leading European manufacturer of
high-performance mineral wool insulation solutions for a variety
of end markets. The acquisition expands Owens Corning’s
mineral wool technology and its presence in the European
insulation market.
Has Acquired
TopBuild Corp. acquired United Subcontractors, Inc. on March 2,
2018 for $475.0 million. United Subcontractors, Inc. is a leading
provider of insulation installation and distribution services to the
residential and commercial construction markets.

HD Supply Holdings, Inc. acquired A.H. Harris & Sons, Inc. on

March 5, 2018 for $380.0 million. A.H. Harris Construction
Has Acquired
Supplies is a leading specialty construction distributor.

Source: Capital IQ

2
 Building Products & Construction Materials | Q1 2018

MIDDLE MARKET INDEX

RSM US LLP and The Harris Poll collect quarterly data from 700 middle market executives, reflecting the state of the middle
market. The data is published in the RSM US Middle Market Business Index (MMBI). A reading above 100 for the MMBI
represents an expansion in the middle market, while a reading below 100 represents a contraction. The distance from 100
represents the strength of the expansion or contraction.

In Q1 2018, the MMBI posted an all-time high of 136.7. Despite the fear of imminent tariffs on foreign steel, the strong
economic condition and tax cuts heightened the middle market.

RSM U.S. Middle Market Business Index (MMBI) Reaches All-Time High

140 136.7
135 132.1 132.2
129.8
130 125.7
123.8
125 121.4 119.8 120.1
120 116.6 115.6
114.5
115
Pessimism Optimism

110
105
100
95
90 + MMBI
85
80
Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018

Source: RSM US LLP

3
 Building Products & Construction Materials | Q1 2018

PUBLIC MARKET SUMMARY

The table below includes financial results and valuation multiples for select publicly-traded, US-based Building Product &
Construction Materials companies.

The majority of sub-sectors outperformed the broader US market over the last year with Decking/Siding/Drywall companies
experiencing the highest year-over-year growth.

Public Valuation Multiples

Stock Price All $'s in Millions EBITDA Enterprise Value/

Company Name 03/31/18 TEV Revenue EBITDA Margin Revenue EBITDA
Plumbing / HVAC
AAON, Inc. $39.00 2,040 405 89 22.0% 5.03x 22.9x
A. O. Smith Corporation $63.59 10,694 2,997 590 19.7% 3.57x 18.1x
Lennox International Inc. $204.37 9,683 3,840 544 14.2% 2.52x 17.8x
Masco Corporation $40.44 14,879 7,644 1,325 17.3% 1.95x 11.2x
Average 9,324 3,721 637 18.3% 3.27x 17.5x
Decking / Siding / Drywall
Continental Building Products, Inc. $28.55 1,300 489 136 27.8% 2.66x 9.6x
Trex Company, Inc. $108.77 3,186 565 160 28.2% 5.64x 20.0x
USG Corporation $40.42 6,552 3,204 513 16.0% 2.04x 12.8x
Average 3,679 1,419 270 24.0% 3.45x 14.1x
Building Systems
Apogee Enterprises, Inc. $43.35 1,465 1,326 169 12.8% 1.10x 8.7x
Armstrong World Industries, Inc. $56.30 3,725 894 234 26.2% 4.17x 15.9x
NCI Building Systems, Inc. $17.70 1,556 1,800 157 8.7% 0.86x 9.9x
Owens Corning $80.40 11,300 6,384 1,268 19.9% 1.77x 8.9x
Average 4,511 2,601 457 16.9% 1.98x 10.8x
Window / Door
Masonite International Corp. $61.35 2,279 2,033 244 12.0% 1.12x 9.3x
Ply Gem Holdings, Inc. $21.60 2,231 2,056 228 11.1% 1.08x 9.8x
Quanex Building Products Corporation $17.40 836 863 97 11.2% 0.97x 8.6x
Average 1,782 1,651 190 11.4% 1.06x 9.3x
Lumber / Wood Products
Boise Cascade Co. $38.60 1,769 4,432 222 5.0% 0.40x 8.0x
Louisiana-Pacific Corporation $28.77 3,660 2,734 655 24.0% 1.34x 5.6x
Universal Forest Products, Inc. $32.45 2,079 3,941 234 5.9% 0.53x 8.9x
Average 2,503 3,702 370 11.6% 0.76x 7.5x
Building Product Distribution
Beacon Roofing Supply, Inc. $53.07 4,349 4,496 396 8.8% 0.97x 11.0x
Builders FirstSource, Inc. $19.84 4,020 7,034 382 5.4% 0.57x 10.5x
GMS Inc. $30.56 1,874 2,491 191 7.7% 0.75x 9.8x
HD Supply Holdings, Inc. $37.94 8,891 5,121 699 13.6% 1.74x 12.7x
Watsco, Inc. $180.97 6,142 4,342 373 8.6% 1.41x 16.5x
Average 5,055 4,697 408 8.8% 1.09x 12.1x
Source: FactSet
TEV – Total Enterprise Value or company’s total value calculated as the market capitalization plus debt, minus cash.
EBITDA – Earnings before interest, income taxes, depreciation and amortization. An approximate measure of a company’s operating cash flow.
Enterprise Value Multiples – Metrics for deriving the value of a business. Total Enterprise Value divided by Revenue quantifies the value of the company to its total revenue while
Total Enterprise Value divided by EBITDA quantifies the value of the company to its operating cash flow.

One Year Returns As of March 31, 2018

Dow Jones Decking / Siding / Lumber / Wood Building Product
S&P 500 Industrial Average Plumbing / HVAC Drywall Building Systems Window / Door Products Distribution
14.0% 16.7% 19.5% 29.7% 17.6% -4.8% 16.4% 7.6%
Source: FactSet 4
 Building Products & Construction Materials | Q1 2018

CONSTRUCTION INPUT PRICING – Upstream Supply

The following table summarizes the month-over-month and year-over-year price changes in staple building product and
construction material inputs.

Producer Price Index – Commodities Construction

Output Price Index Base Year: 1982

1 Month % 12 Month
February-18 January-17 February-17 Change % Change
Asphalt Felts and Coatings 217.1 226.7 216.4 -4.2% 0.3%
Concrete Products 258.9 257.5 251.3 0.5% 3.0%
Fabricated Structural Metal Products 223.0 222.3 217.0 0.3% 2.8%
Glass 144.8 144.7 142.1 0.1% 1.9%
Hardware 216.1 215.2 213.1 0.4% 1.4%
Hardwood Lumber 231.2 226.2 217.5 2.2% 6.3%
Iron and Steel 222.1 217.9 207.3 1.9% 7.1%
Nonferrous Wire and Cable 242.9 249.4 233.4 -2.6% 4.1%
Plumbing Fixtures and Fittings 269.8 266.2 259.6 1.4% 3.9%
Plywood 225.3 218.0 192.4 3.3% 17.1%
Softwood Lumber 246.3 233.2 213.1 5.6% 15.6%
Source: US Bureau of Labor Statistics

Iron & Steel Iron & Steel Price History

260

Joseph Innance, S&P Global Platts’ editorial 240

director for Metals Americas recently
commented on the rising steel prices. 220
“Anytime the US general economy grows by
200
nearly 3.0% GDP, steel benefits. The three
pillars of steel demand are construction, 180
automotive, and energy. These steel-
consuming sectors are all doing well currently.” 160
Trump’s plan of a 25.0% tariff on imported
steel will likely keep prices high this year.2

Source: US Bureau of Labor Statistics

Softwood Lumber Softwood Lumber Price History

250
A recent Wall Street Journal article addressed 240
the increase in lumber prices. “Builders in the 230
US say the higher lumber costs are making 220
homes more expensive. Lumber prices started 210
rising early last year after fires destroyed prime 200
forests and a trade dispute between the US and
190
Canada restricted supplies. Now a shortage of
railcars and trucks is forcing builders to pay 180
even more.”3

Source: US Bureau of Labor Statistics 5

 Building Products & Construction Materials | Q1 2018

CONSTRUCTION MARKET DYNAMICS – Downstream Demand

Skilled Labor Shortage

The Associated General Contractors of State Construction Employment February 2018

America (AGC) reported that 35 states
and the District of Columbia added
construction jobs between February 2017
to February 2018, while 38 states added
construction jobs since January.

“The construction industry continues to Over -10%

add employees in most of the nation, -5.1% to -10%
despite a shortage of workers with
-0.1% to -5%
construction experience,” said Ken
Simonson, Chief Economist for AGC. 0%

“But job openings are growing, as 0.1% to 5%

contractors encounter a shrinking pool of 5.1% to -10%
experienced jobseekers.”
Over 10%

Source: AGC of America

Housing Starts

US housing starts have been rising steadily since April 2009 when the annual rate hit a low of 478,000. The consensus is that
1.5 million new homes at a minimum are necessary to keep up with population growth and the replacement of old homes,
given current homeownership percentages. The total number of households is expected to grow over the 2015-2025 period
at a pace exceeding that of the 1990s, with an increase of roughly 13.6 million households over the decade (1.36 million
annually). Because many of these households will be headed by people in their prime home buying years, demographic
demand for single family housing should become increasingly favorable.

The March 2018 Monthly New Residential Construction release from the US Census Bureau reported annual housing starts of
1.32 million (seasonally adjusted). This is up 11.0% from the March 2017 level of 1.19 million. The largest concentration of
new housing starts was in the South region of the U.S. with 621,000 of the 1.32 million total or 47.1%. All regions except the
South saw an increase in housing starts, year-over-year.4

Annual Rate for US Housing Units Started and Population Growth

3,000 340,000
Housing Starts (Thousands)

2,500 325,000
Population (Thousands)

2,000 310,000

1,500 295,000

1,000 280,000

500 265,000

0 250,000

Source: U.S. Census Bureau 6

 Building Products & Construction Materials | Q1 2018

REMODELING MARKET INDEX

Remodeling Market Index (RMI) The Remodeling Market Index (RMI) is based on a
70 quarterly survey in which remodelers are asked to rate
a variety of aspects within the remodeling market as
60
‘higher’ or ‘lower’ than the prior quarter. An index
number of 50 indicates equal numbers of remodelers
50
reporting activity ’higher’ and ‘lower’ than the prior
40 quarter. Any number over 50 indicates that more
remodelers view remodeling market conditions as
30 higher than the previous quarter.

20 The Q4 2017 release of the index reported the Current

Market and Future Market components of the index at
10 60 and 59 respectively, averaging 60 overall. The RMI
has recorded levels above 50 consistently since Q1 of
0
2013.5

Current Market Conditions Future Market Indicators

Source: NAHB Remodeling Market Index

ARCHITECTURAL BILLINGS INDEX

AIA’s monthly Architecture Billings Index (ABI) is a leading Billings Design Contracts
economic indicator for nonresidential construction activity, with
a lead time of approximately 9–12 months. The index is derived Remodeling Market Index
from AIA’s Work-on-the-Boards survey, which has gathered data
on shifts in billings from architectural firm leaders for over 20 JANUARY FEBRUARY

53.9 54.5
years.

Architecture firm billings remained strong during February,

generating at ABI score of 52.0 for the month. This indicates a
slower, more moderate pace than January’s ABI score of 54.7. Architecture Billings Index
Firm billings have now increased every month since September
2017. JANUARY FEBRUARY

An AIA survey revealed that the top trend that firm leaders think
will have the greatest impact on the industry is offsite 54.7 52.0
construction processes (e.g. prefabrication; modularization;
preassembly; offsite multitrade fabrication).6 Source: The American Institute of Architects

7
 Building Products & Construction Materials | Q1 2018

CONSTRUCTION OUTLOOK

US Construction Starts (Billions of Dollars)

Total construction starts are forecasted U.S.

US ConstructionStarts
Construction Starts
to advance 3.0% in 2018, reaching Billions of Dollars
$765.2 billion. Residential building is
predicted to gain 4.0% in 2018 and 2012 2013 2014 2015 2016 2017 2018P
non-building construction should Total Construction 492.9 547.4 607.0 684.0 721.2 746.5 765.2
stabilize after two years of decline. 12% 11% 11% 13% 5% 4% 3%
Single Family Housing 125.8 159.2 163.8 186.2 201.1 219.8 240.0
Single family housing should see a rise 29% 27% 3% 14% 8% 9% 9%
of 9.0% throughout the year. The Multifamily Housing 40.8 51.8 70.7 87.7 95.2 89.1 82.1
increase is forecasted based on 37% 27% 36% 24% 9% -6% -8%
continued employment growth. The Commercial Buildings 55.3 67.6 84.2 92.3 111.8 114.6 117.4
number of US millennials reaching 14% 22% 25% 10% 8% 3% 2%
home buying age will also boost single Institutional Buildings 91.8 92.1 105.1 108.2 118.5 135.5 139.2
family housing. -8% 0% 14% 3% 10% 14% 3%
Manufacturing Buildings 13.1 19.4 35.8 25.1 20.0 25.4 25.1
-24% 48% 85% -30% -20% 27% -1%
Public Works 112.3 127.4 122.3 127.0 128.5 130.1 133.4
5% 13% -4% 4% 1% 1% 3%
Electric Utilities 53.8 29.9 25.1 57.4 46.2 32.0 28.0
30% -44% -16% 129% -20% -31% -13%
Source: Dodge Data & Analytics

Trends in building activity for the current cycle initially followed the path of the 1991-2011 super cycle, but boosted above
the previous cycle in 2015. Since then, the cycle has been growing at a slower, more modest rate. The recent tax reform
should boost construction starts and will help prevent a severe downturn. Dodge’s Chief Economist, Robert A. Murray
projected, “Given the fact that the construction industry is not currently faced with imbalances present at cyclical peaks in the
past, it suggests that the downturn when it comes will be relatively mild. And it’s also possible that once a peak is reached,
the current cycle will remain close to that level for several years.”

Total Construction Activity by Cyclical Trough (T)-100 Based on Constant Dollars

180

160
2011-Ongoing

140

120
1982-1991
1991-2011
100
1975-1982
80

60
T T+2 T+4 T+6 T+8 T+10 T+12 T+14 T+16 T+18 T+20
Years from Cyclical Trough
Source: Dodge Data & Analytics

8
 Building Products & Construction Materials | Q1 2018

CONSTRUCTION BACKLOG

The Associated Builders and Contractors Year-over-Year CBI Map of Regions and Backlog Month
(ABC) Construction Backlog Indicator (CBI) is
a forward-looking national economic
Midwest
indicator that reflects the amount of work
that will be performed by commercial and
Q4 2016: 7.7 months 0.6 Months Northeast Q4 2016: 8.4 months
Q4 2017: 8.3 months Q4 2017: 10.4 months
industrial contractors in the coming months.
2.0 Months
The March release of the CBI reported that
the national average backlog expanded to
9.7 months during the fourth quarter of 2017.
Q4 displays an increase of 2.3% from the
prior quarter and represents the highest level
of backlog ever.

As shown on the map (see right), average

backlog in the South remains the longest at
11.0 months and has grown by 1.4 months
year-over-year. Average backlog in the
West
Northeast grew by 2.0 months, pushing the Q4 2016: 6.2 months 0.8 Months
national average to its highest level.7 Q4 2017: 7.0 months South
Q4 2016: 9.6 months 1.4 Months
Q4 2017: 11.0 months

Source: Associated Builders & Contractors, Construction Backlog Indicator

CBI - National Backlog Average

Q1 2010 – Q4 2017
9.7
9.5
9.0
8.8 8.7 8.7 8.6
8.5 8.4 8.5 8.5 8.5 8.7 8.3 8.6
8.1 8.1 8.2 8.2 8.3 8.1
7.8 8.0 8.0 7.9
7.7
7.3 7.4
7.2
7.0 7.1

6.1
Q1 2010
Q2 2010
Q3 2010
Q4 2010
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015
Q2 2015
Q3 2015
Q4 2015
Q1 2016
Q2 2016
Q3 2016
Q4 2016
Q1 2017
Q2 2017
Q3 2017
Q4 2017

Source: Associated Builders & Contractors 9

 Building Products & Construction Materials | Q1 2018

CONCLUDING THOUGHTS

Despite the overall decrease in transaction volume in 2017, the Building Products & Construction Materials market
consistently outperformed the broader M&A market in terms of transaction volume and we expect this trend to continue
throughout the rest of 2018. Given the demand for additional homes to satisfy population growth and record backlogs, the
building products and construction materials market is poised for growth. The current economic cycle trends more with the
super-cycle from 1991-2011 indicating we have many strong years ahead which bodes well for business owners considering
selling their business, making acquisitions or raising capital, as market conditions are currently favorable.

10
 Building Products & Construction Materials | Q1 2018

CITATIONS

1. Pitchbook, “2017 Annual M&A Report,” https://pitchbook.com/news/reports/2017-annual-ma-report, accessed April 12,

2018.
2. Barron’s, “Tariffs: Giving Steel Prices Another Nudge,” https://www.barrons.com/articles/tariffs-giving-steel-prices-
another-nudge-1520532179, accessed April 18, 2018.
3. Wall Street Journal, ”With Lumber in Short Supply, Record Wood Costs Are Set to Juice Home Prices,”
https://www.wsj.com/articles/with-lumber-in-short-supply-record-wood-costs-are-set-to-juice-home-prices-
1519916401, accessed April 18, 2018.
4. US Census Bureau, “Monthly New Residential Construction, March 2018,”
https://www.census.gov/construction/nrc/pdf/newresconst.pdf, accessed May 7, 2018.
5. National Association of Home Builders, “Table 1. Remodeling Market Index,” https://www.nahb.org/en/research/housing-
economics/housing-indexes/remodeling-market-index.aspx, accessed April 10, 2018.
6. The American Institute of Architects, “Architecture Billings Index,” https://www.aia.org/resources/10046-the-architecture-
billings-index, accessed April 18, 2018.
7. Associated Builders and Contractors, Inc., “ABC’s Construction Backlog Indicator Hits a New High; 2018 Poised to be a
Very Strong Year for Construction Spending,” Associated Builders and Contractors, Inc., March 13, 2018,
http://www.abc.org/News-Media/Construction-Economics/Construction-Backlog-Indicator/entryid/13680/abc-s-
construction-backlog-indicator-hits-a-new-high-2018-poised-to-be-a-very-strong-year-for-construction-spending,
accessed April 18, 2018.

Disclosure: This report is a periodic compilation of certain economic and corporate information, as well as completed and announced merger and acquisi-
tion activity. Information contained in this report should not be construed as a recommendation to sell or buy any security. Any reference to or omission of
any reference to any company in this report should not be construed as a recommendation to buy, sell or take any other action with respect to any security of
any such company. We are not soliciting any action with respect to any security or company based on this report. The report is published solely for the
general information of clients and friends of Capstone Headwaters. It does not take into account the particular investment objectives, financial situation or
needs of individual recipients. Certain transactions, including those involving early-stage companies, give rise to substantial risk and are not suitable for all
investors. This report is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied
upon as such. Prediction of future events is inherently subject to both known and unknown risks and other factors that may cause actual results to vary
materially. We are under no obligation to update the information contained in this report. Opinions expressed are our present opinions only and are subject
to change without notice. Additional information is available upon request. The companies mentioned in this report may be clients of Capstone
Headwaters. The decisions to include any company in this report is unrelated in all respects to any service that Capstone Headwaters may provide to such
company. This report may not be copied or reproduced in any form, or redistributed without the prior written consent of Capstone Headwaters. The
information contained herein should not be construed as legal advice.

11
BUILDING PRODUCTS & SERVICES TEAM
Building Products & Construction MaterialsRock
Market
Products
Update| Q3
| Q12017
2018

Darin Good
Managing Director
dgood@capstoneheadwaters.com | 303-549-5674

Darin is a recognized expert witness and speaks nationally regarding merger and acquisitions. Courts and
clients appreciate his ability to synthesize large amounts of complex business information and present it in
concise terms that are clearly understood by all parties. Trade groups and national publications have
recognized Darin’s business acumen and technical knowledge.
Prior to joining Capstone Headwaters, Darin started, operated, made acquisitions and sold three successful
companies in construction, import and distribution, and commercial real estate management. Over a two
year period, he implemented the turnaround of the underperforming business units of a publicly held
national franchisor.
Three sell side transactions that Darin performed are published and taught in business schools around the
globe. Darin teaches these cases at the University of Denver, where he received his Bachelor of Science in
Finance.

Brian Krehbiel
Senior Vice President
bkrehbiel@capstoneheadwaters.com | 303-531-5008

Prior to joining Capstone Headwaters, Brian spent five years with a boutique investment bank performing
sell-side transactions, financial modeling and value-add client services. At Capstone Headwaters, Brian is a
member of the Building Products & Construction Services team assisting clients with sell-side, buy-side and
debt and equity raise transactions.
Prior to his career in Investment Banking, Brian developed construction industry and operations experience
owning and managing a successful family-owned residential construction company. His education and in-
dustry expertise are resources used in all aspects of the transaction process.

Crista Gilmore
Vice President
cgilmore@capstoneheadwaters.com | 303-531-5013

Crista started her career at KPMG LLP where she audited a wide range of businesses from small non-profit to
large Fortune 100 companies. Crista then accepted a Senior Associate role with a $12.0 billion multi-
strategy hedge fund managing the monthly PnL close process for several funds. She was promoted to Vice
President, Valuations responsible for pricing the portfolio of over 8,000 securities monthly, as well as
reporting to the Valuation Committee on a bi-monthly basis.
At Capstone Headwaters, Crista works with clients to improve their financial metrics and reporting
capabilities. Additionally, she performs research, valuation analysis, prepares marketing documentation,
manages client data rooms and responds to due diligence inquiries.
Crista graduated summa cum laude from Drake University with a degree in Finance and Accounting. She
also earned a Master’s of Accounting degree from Drake University.

12
 BUILDING PRODUCTS & SERVICES TEAM
Building Products & Construction MaterialsRock
Market
CONT.
Products
Update| Q3
| Q12017
2018

Dominic Cervi
Associate
dcervi@capstoneheadwaters.com | 303-531-4605

Dominic has spent the entirety of his investment banking career with Capstone Headwaters, primarily
focusing on sell-side M&A. In addition to 2017’s Cross Border Deal of the Year, Dominic has executed deals
ranging from $30mm to $200mm across a wide-range of industries, including Industrial Manufacturing,
Industrial Technology, Transportation & Logistics, TMT and Healthcare & Life Sciences. Dominic’s primary
responsibilities are creating process materials, performing financial and operational analysis, data room
population and management as well as coordinating management presentations.

Prior to joining Capstone Headwaters, Dominic was a professional soccer player with the United States
Soccer Federation, including as a member of the 2008 Beijing Olympic Games, and the Celtic Football Club.

Dominic graduated cum laude from the University of Denver with a degree in Finance and Accounting.

Zach Schultz
Analyst
zschultz@capstoneheadwaters.com | 303-951-7126

Zach joined Capstone Headwaters in the spring of 2017. Zach’s transaction experience includes M&A
advisory focused primarily in the building products industry. Zach’s responsibilities include creating pitch
materials, performing in-depth industry research and assisting in the management of the due diligence
process.

Prior to joining Capstone Headwaters, Zach was an analyst at Centennial Capital Partners, providing
investment management services for high net worth clients.

Zach graduated magna cum laude from the University of Colorado, Denver with a degree in Finance. Zach
is pursuing a Master’s of Accounting degree from Regis University.

SELECT CAPSTONE HEADWATERS BUILDING PRODUCTS & SERVICES TRANSACTIONS

has been acquired by has been acquired by

has been acquired by has been acquired by has been acquired by
has performed
a portfolio company of a portfolio company a majority
of recapitalization

has been
has been acquired by has been acquired by has been recapitalized
recapitalized in has been acquired by has been acquired by
partnership with with
Beirne Pipeline Holdings
Axis Private Equity Group
Navigator Partner

13
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Chicago • Dallas Denver •
Greenwich • Houston
Los Angeles • New York • Orange
County • Philadelphia • San Diego •
San Francisco • St Louis • Tampa
Washington DC
Brazil • Canada • Chile • China
Colombia • Croatia • Czech Republic • Denmark
Egypt • Finland • France • Germany • Hungary • India
Ireland • Italy • Japan • Mexico • Morocco • Netherlands
Norway • Peru • Poland • Russia • Spain • Sweden • Switzerland
Turkey • United Arab Emirates • United Kingdom • United States • Vietnam

Capstone Headwaters is an elite investment banking firm dedicated to serving the corporate finance needs of middle market
business owners, investors and creditors. Capstone Headwaters provides merger & acquisition, private placement, corporate
restructuring and financial advisory services across 16 industry verticals to meet the lifecycle needs of emerging enterprises.
Headquartered in Boston, MA and Denver, CO, Capstone Headwaters has 19 offices in the US, UK and Brazil with a global
reach that includes over 300 professionals in 34 countries.

www.capstoneheadwaters.com

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