GCG’s Q3 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:
- Economic headwinds are steering consumer behavior towards increased saving and less spending on premium goods. The looming economic downturn is prompting industry players to rethink their path to growth in the sector.
- In Q3 2023, the Food & Beverage industry saw a modest dip in transaction volume compared to the previous quarter. Interestingly, there was a surge in observed deal values, more than doubling in size and averaging $75.3M this quarter.
- The Packaged Foods and Meats category led activity in the industry, accounting for 30.6% of total volume. The Restaurants sector was active as well, comprising 27.5% of transaction volume.
- Based on a representative set of publicly traded companies across the F&B industry, companies traded at an average multiple of 12.4x EBITDA and 2.3x Revenue in Q2 2023.
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