Mon, Feb 12, 2024
Strategic buyers represented 82% (above the TTM level of 78%) of deal activity in the food and beverage industry this quarter, driven by the abundance of cash on the balance sheets of large corporations. But despite large amounts of dry powder, financial buyer activity has slowed due to the scarcity of affordable debt, which has resulted in a slowdown of private equity fundraising and prolonged holding periods of portfolio companies.
As Canada and the U.S. continue to experience substantial decreases in inflation levels, we anticipate that expected interest rate cuts in 2024 could drive an increase in M&A activity within the food and beverage industry.
Learn more in our Food and Beverage M&A Industry Insights — Winter 2024 report.
Our Food and Beverage M&A Industry Insights report aims to identify trends and provide insights across the sector, focusing on key themes, issues and opportunities. To view additional valuation data and public company trading statistics, download our Food and Beverage M&A Industry Valuation Data.
M&A advisory, restructuring and insolvency, debt advisory, strategic alternatives, transaction diligence and independent financial opinions.
Kroll’s investment banking practice has extensive experience in M&A deal strategy and structuring, capital raising, transaction advisory services and financial sponsor coverage.
Consumer, Retail, Food and Restaurant expertise for middle-market M&A transactions.
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