Oct 18, 2021

Annual Consumer Industry Report – Middle Market Deal Activity & 2022 Outlook

Pandemic Accelerates Demand for Outdoor Recreation, E-Commerce, and Health & Wellness Products

Capstone Partners released its first annual 2021 Consumer Industry Middle Market Activity & Outlook Report, offering insights and analysis into merger and acquisition activity (M&A) and valuations, public market trading multiples, and key macroeconomic trends impacting the industry. The report features sector highlights from across Capstone Partners’ Consumer Investment Banking Group, which is the leading advisor to privately-owned consumer businesses seeking to fund growth and achieve liquidity.

Heightened M&A volume in the Consumer industry through year-to-date (YTD) has been driven by significant levels of pent-up demand, impending capital gains tax increases, and favorable industry valuations. Many buyers remained sidelined through much of 2020, with strategics focused on maintaining healthy balance sheets and private equity allocating resources to support portfolio companies. With industry participants now operating on greater financial footing, deal flow has returned at a fervent pace through YTD 2021, as reflected by a 36% increase in transaction volume year-over-year (YOY).

Also included in this report:

  • Insight into how the current macroeconomic environment has affected the sector’s performance and growth outlook.
  • Discussion on the six key trends forecasted to shape the industry in the near-term.
  • Industry spotlights featuring commentary and projections from Capstone’s lead sector bankers.

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