M&A expertise in our C&R market update (round-up 2024)
Consumer Goods & Retail (C&R) sector update: recent market developments and deal activity
Our C&R market update is now available. This publication provides an in-depth analysis of transactions in the consumer goods & retail sector for the DACH region (Germany, Austria and Switzerland) in 2024.
We analyse the following topics:
- Market overview: despite ongoing economic uncertainties, the C&R sector saw a slight increase in M&A transactions in 2024. M&A activity was particularly robust in the food, beverage and tobacco, and online retail sectors, even though transaction volume was lower compared to 2023. Capital market activity in the C&R sector remained stable, with the retail sector recording a significant number of follow-on transactions, reflecting strong investor confidence in this area.
- M&A activity: in the first half of 2024, the sector experienced further growth in Germany compared to the previous year. This was mainly due to digital transformation, strong growth in online retail, and the increasing importance of sustainable products. Private equity investors were also a significant driver, accounting for a substantial share of all transactions in the first half of the year.
- Valuation environment: new impulses in M&A deals in the C&R sector are expected for 2025, driven by the pressure to move towards digital business models, greater client focus, and data-driven business models. It is anticipated that investors will deploy their capital as inflation and interest rates improve. A more favourable interest rate environment and narrowing valuation gaps could boost PE activity.