Food & Beverage Q2 2011 M&A Market Review

Gambit Corporate Finance LLP is pleased to announce the release of its Food and Beverage M&A Market Review for Q2 2011.

M&A Highlights
The average deal size for Q2/2011 was £54 million, over double that in the same quarter in 2010 (£26 million), underpinned by an increase in underlying valuations… 

Feature: Continued investment in the food manufacturing sector…
The food and beverage manufacturing sector remained relatively stable through the economic downturn. Whilst it reduced its output, it has returned to pre-recession levels quickly. As a sector it currently represents 15% of UK manufacturing turnover and employment… 

Valuation Parameters
After average EV/EBITDA multiples for food manufacturers dropped to 6.02x and for beverage manufacturers 7.88x in Q4/2008, valuation multiples have increased to 7.47x for food manufacturers and 11.23x for beverage manufacturers in Q2/2011 both up on Q1/2011. This indicates a continued increase in investor confidence and continued improvement in the financial performance of food and beverage manufacturers… 

Current Opportunities…
Gambit Corporate Finance LLP, together with our international network Corporate Finance International (“CFI”), currently has clients seeking M&A opportunities across many food and beverage sub-sectors. To find out more about our current mandates across the network…

To view the full version of the report click here

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