Food & Beverage Q1 2011 M&A Market Review

Gambit Corporate Finance LLP is pleased to announce the release of its Food & Beverage M&A Market Review Q1 2011

Key features of this issue include:

M&A Highlights
The average deal size for Q1/2011 was £63 million up from £50 million in Q4/2010 and almost double that in the same quarter in 2010 and the 2010 average deal size (£43 million)…  

Feature: Will private label foods hold onto their gains…
Private label was estimated to have reached £36.5 billion in 2010, a growth of 25% over 2005-10 (Mintel 2011). With an economic recovery, pressure will be put on private label products to hold onto gains made in market share during the recession. During previous recessions, private labels lost… 

Valuation Parameters
The average food manufacturers’ EV/EBITDA multiple dropped to 6.0x in Q4/2008. Valuation Multiples have since recovered and stabilised at approximately 7.1x for food manufacturers and 10.5x for beverage manufacturers. This indicates stable investor confidence and this, coupled with liquidity in the quoted markets, augers well for an increase in M&A activity… 

Current Opportunities…
Gambit Corporate Finance LLP, together with our international network Corporate Finance International currently have clients seeking acquisitions across many food and beverage sub-sectors. Below is an illustration of certain clients but if you would like to find out more about our current mandates across the network…

To view the entire report click here

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