Market Monitor: Outdoor & Recreation

Market Monitor: Outdoor & Recreation

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Market Monitor: Outdoor & Recreation

 Making the right decisions for your business starts with having the most accurate and current information available. Our Outdoor & Recreation  Market Monitor keeps you up to date on the events, trends, and market forces that shape and guide the industry.

Outdoor & Recreation Sector Resilience in 2023

  • Surge in Transaction Volume: Demonstrating resilience, the Outdoor & Recreation sector experienced a surge in transaction volume in the latter half of 2023, rebounding from a slower start earlier in the year.

  • Shift in Deal Dynamics: While fewer major transactions occurred in 2023, there was a healthy number of smaller to medium-sized deals completed in the sector.

  • Divestiture Trend: Notable trend was observed in the divestiture of Outdoor & Recreation brands by former brand consolidators, focusing on core brand and product management strategies.

  • Strategic Buyer Dominance: More than 80% of acquisitions in 2023 were orchestrated by strategic buyers, underscoring the sector’s robust growth.

Investor Confidence and Optimism

  • Discerning Investors: Discerning investors express confidence and optimism through continued minority investments in Outdoor & Recreation sector companies.

  • Positive Momentum: The sector anticipates a trajectory in the first half of 2024, reminiscent of the successful trends observed in the second half of 2023, signaling resilience and potential for continued growth.

  • Proactive Adaptation: Companies are proactively adapting by fine-tuning inventory management and strategically navigating the promotional and marketing landscape for enhanced efficiency.

Anticipated Benefits from the 33rd Summer Olympics

  • Global Spectacle: The eagerly anticipated 33rd Summer Olympics set to take place in Paris this July.

  • Diverse Sports Introduction: Beyond traditional sports, the Olympics will introduce additions such as sport climbing, surfing, and skateboarding.

  • Unparalleled Platform: The Olympics promise to provide an unparalleled platform, offering substantial benefits to brands across the entire Outdoor & Recreation sector.

  • Amplified Exposure: The global spectacle of the Olympics is poised to amplify exposure for the dynamic Outdoor & Recreation segment and its brands.

  • Contributing to M&A Activity: The Olympics contribute to a brighter future for Outdoor Recreation merger and acquisition activity.

For more information or questions, please contact our contributors:

Rich Anderson, Managing Director: randerson@hexagoncapitalalliance.com

Tyler Dale, Managing Director: tdale@hexagoncapitalalliance.com

Johnny Sherwood, Director: jsherwood@hexagoncapitalalliance.com

Brennan Anderson, Vice President: [email protected]