Consumer industry to close the year with strong M&A activity and healthy valuations

Lincoln International’s Consumer Group displays great diversity in expertise as clients seek innovative companies across segments

Coming into 2019, we saw strong M&A activity and healthy valuations in the consumer industry. As we near year-end, these trends remain robust. Both strategic and private equity acquirers are highly active in sale processes, drawn by opportunities to increase scale and bring new strategic competencies in-house. Strategics looking to stay abreast of innovation and disruption are seeking innovative companies across a diverse set of consumer segments, while private equity buyers are increasingly leveraging platform investments to compete and win deals, driving transaction multiples.

Middle market consumer companies are implementing ever-more sophisticated omni-channel and direct-to-consumer methods to reach their markets, creating competitive moats and enhancing value in a sale. In-line with broader consumer trends, companies with leading e-commerce, logistics, better-for-you or health and wellness capabilities are seeing outlier transaction results due to favorable growth prospects, as well as a perceived ability to weather a potential economic downturn.

Below is a selection of 2019 transactions on which we advised leading private and private equity owned clients to realize their goals.