United States

Necessity for growth will bolster consumer products M&A

Q1 2016 Consumer Products Industry Spotlight

INSIGHT ARTICLE  | 

Download report

While factors, including lower oil prices and continually increasing consumer spending, have provided benefits to the consumer products space, businesses in the sector are still facing profitability challenges, as they navigate a changing environment. Spending behavior has remained relatively similar to what we’ve seen in recent quarters, with consumers continuing to spend, but deploying their disposable incomes in nontraditional avenues and bigger-ticket items.

Key highlights from 2015:

  • Mergers and acquisitions deal value for 2015 came in at just shy of $214 billion across 1,865 transactions, representing a 3.7 percent decline in year-over-year (YoY) volume.
  • Excluding the 3G Capital-backed Kraft-Heinz merger in Q3, 2015 saw both YoY private equity (PE) capital invested and volume decline for the first time since 2009. $123.5 billion worth of PE transactions was completed last year across 708 transactions, a decline of around 7 percent in both value and volume.
  • The fourth quarter saw just a single consumer products initial public offering come to market, raising $48 billion in the process, a massive drop-off from an already depleted $1.5 billion raised via five listings in the third quarters.

Contact our professionals

Contact us by phone 800.274.3978 or
submit your questions, comments or proposal requests.



Private Equity Subscriptions

Subscribe to Quarterly Industry Spotlights

Subscribe


Events / Webcasts

EVENT

Private equity and the software industry

  • December 14, 2016

IN-PERSON EVENT

RSM’s holiday and networking event

  • December 01, 2016

RECORDED WEBCAST

M&A: What to expect in 2017

  • November 16, 2016

RECORDED WEBCAST

Carried interest and GP estate planning

  • November 15, 2016