Author: hexagoncapital

Market Monitor: Food & Beverage

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Market Monitor: Food & Beverage

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

After reaching unprecedented levels in 2021, U.S. Food & Beverage transaction activity cooled in 2022, specifically during the second half of the year, as macroeconomic factors such as high inflation and rising interest rates led many likely acquirers and investors to take a “wait-and-see” approach.
Scarcity in the lending markets coupled with a broader market correction in public equities has led to a valuation disconnect between buyers and sellers, which can be bridged utilizing creative deal structures including earn-outs, seller financing, and/or non-cash considerations.
Generally considered more “recession-proof” than others, we expect the appetite for Mergers & Acquisitions (“M&A”) in the U.S. Food & Beverage industry to remain strong in 2023 and ramp up in the second half of the year, with companies standing out from the pack in terms of product differentiation, growth trajectory and margin profile commanding premium valuations.

For more information or questions, please contact our contributors:

Rich Anderson, Managing Director: randerson@hexagoncapitalalliance.com

Brandon Clewett, Managing Director: bclewett@hexagoncapitalalliance.com

Johnny Sherwood, Director: jsherwood@hexagoncapitalalliance.com

Market Monitor: Apparel, Accessories & Footwear

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Market Monitor: Apparel, Accessories & Footwear

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

In 2022, publicly traded Apparel, Accessories, and Footwear (AAF) company’s equity valuations contracted by 17%, surprisingly strong relative to the 16% decrease in the S&P 500 index.
Accessories businesses logged the best performance 4%, while Activewear and Luxury followed with 10% and 11%, respectively.
On a year-over-year basis, the number of Mergers & Acquisitions transactions in the United States dipped 19% to 50, while the number of Private Placements dipped 10% to 58.

For more information or questions, please contact our contributors:

Rich Anderson, Managing Director: [email protected]

Tyler Dale, Managing Director: tdale@hexagoncapitalalliance.com

Johnny Sherwood, Director: jsherwood@hexagoncapitalalliance.com

Brennan Anderson, Vice President: banderson@hexagoncapitalalliance.com

Imagenet

Market Monitor: Packaging Materials – CW

Market Monitor: Packaging Materials

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Market Monitor: Packaging

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

Dynamics in the capital markets can only be described as booming to volatile and gyrating with every subsequent economic data release; public and private market valuations across sectors have come off the highs seen in 2019 and 2021.
Transaction activity is down ~15% in 2022 coming off a banner year in 2021; overall valuations are also off 15% – 20% across substrates from a year earlier.
Economic headwinds are likely to continue pressuring valuations in 2023; what is proving out yet again – packaging end markets matter and high-functioning management teams can impact valuations for better or worse.

For more information or questions, please contact our contributors:

Andrew Suen, Managing Director: asuen@hexagoncapitalalliance.com