Capstone Partners Reports: Consumer M&A Market Prepares for a Rebound in 2024
The discussion of "fortress" balance sheets is often in the context of leading multinational banks and asset management institutions. The concept alludes to creating a highly liquid asset profile that can withstand financial shocks while being able to deploy capital to fund spending pursuits. In 2023,
In 2023, the economy witnessed a substantial shift in spending that heavily favored the Services segment. Personal consumption expenditures on services increased 7.4% YOY, over double the YOY growth experienced by goods spending (3.3%). This marked the widest difference of services spending growth over goods spending growth since 2009. Areas such as Recreation Services, Food Services & Accommodations, and Housing & Utilities Services exceeded overall growth in services spending. Evidence of this trickled into M&A markets, with Food-adjacent sectors and the Home Goods space registering YOY increases in total M&A transaction volume.
It remains to be seen if the
"For the first time in months the market has visibility over the direction of interest rates. The cost of money will still be meaningful, but debt markets are expected to be much more accommodating over the next six to 12 months than the preceding period. For privately-owned businesses contemplating a liquidity event—2024 will bring significant buyer appetite and may usher a new bull market in Consumer dealmaking," said Capstone's Head of Consumer Investment Banking
Also included in this report:
- How M&A volumes and public market valuations in the Consumer industry fared in 2023.
- Which sectors outperformed the broader Consumer industry and are poised to garner buyer interest in 2024.
- What trends are driving M&A activity across the Consumer industry and a breakdown of each of the 12 highlighted sectors.
To access to full report, click here.
ABOUT CAPSTONE PARTNERS
For over 20 years, the firm has been a trusted advisor to leading middle market companies, offering a fully integrated range of investment banking and financial advisory services uniquely tailored to help owners, investors, and creditors through each stage of the company's lifecycle. Capstone's services include M&A advisory, debt and equity placement, corporate restructuring, special situations, valuation and fairness opinions and financial advisory services. Headquartered in
For More Information Contact:
Managing Director, Head of Consumer Investment Banking
917-434-6124
kwasik@capstonepartners.com
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