Q1 2017 Food & Beverage M&A Update
Greenwich Capital Group LLC’s Q1 2017 Food & Beverage M&A Update offers insight into recent trends in the Food & Beverage industry as well as the state of the overall middle-market M&A environment. The report provides a data-driven analysis on transaction volumes and values, valuation multiples and private equity deal flow.
Key findings include the following:
- Q1 2017 transaction volume totaled 6,487 deals that resulted in $35.9 billion of value, representing a 2.2% quarterly increase in volume and 20.4% decrease in value from Q4 2016.
- Valuation multiples reached an average of 10.3x EBITDA in Q1, a significant increase from 9.4x in the prior quarter. Multiples are anticipated to remain at near recent highs as private equity funds and corporations continue to compete for acquisitions.
Food 8 Beverage M&A
- Food & Beverage M&A activity remained strong in Q1. Strategic buyers continue to dominate overall deal flow as corporations seek acquisitions to offset slowing organic growth and to diversify their offerings.
- Consolidation within the Packaged Foods and Meats sector will continue to drive strategic acquisitions, especially as favorable market conditions (i.e., low interest rates, proposed tax reform) and idle cash stockpiles promote deal flow.
View the complete Q1 2017 Food & Beverage M&A Update for a more in-depth analysis of key market trends and observations.