GCG’s Q2 2023 Food & Beverage Industry Update provides an overview of the latest trends in the sector, including recent performance, valuation multiples, and the state of the middle-market M&A environment.
Key findings include the following:
- The Food & Beverage industry faced market compressions in Q2 2023, primarily as a result of concerns that consumers’ wallets are being stretched by inflation and rising prices. Despite these challenges, companies in the sector remain confident that they can manage costs and alleviate pricing pressures by working together with their suppliers.
- The Restaurants segment was the strongest performer in Q2 2023, recording a median increase of 5.8% in share price over the quarter.
- Transaction volume in the Food & Beverage industry slightly increased in Q2 2023 compared to the previous quarter. However, transaction volume decreased by 12% on a year-over-year basis.
- Financial buyers remain active in the sector, but strategic buyers represent the largest portion of acquirers (89.5%). With the current interest rate environment, strategic buyers are finding it increasingly advantageous to utilize their readily available cash for acquiring smaller companies.
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