Steady Consumer Spending Fuels Healthy E-Commerce M&A Activity
Capstone’s latest E-Commerce M&A Update reports that, despite high inflation and persistent economic uncertainty, American consumers continue to spend steadily online. E-commerce sales grew 7.8% in Q1 2023 to $272.6 billion, and online sales now make up 15.1% of total retail sales. This resilience of consumer demand has helped cushion the potential impact of higher prices and interest rates on the economy and has acted as one of the main impediments to the onset of a much-anticipated recession.
The frenzied pace of e-commerce M&A activity, especially among Amazon FBA aggregators, has slowed from the peaks witnessed in 2021. However, the market has started to show early signs of accelerating. Well-capitalized aggregators have consolidated smaller players in order to build brands and scale offerings. More deals among aggregators are expected through year end, while high-quality D2C brands and B2B companies will continue to attract buyer interest.
Also included in this report:
- How normalization of supply chain operations and decreasing container costs are reshaping 2023 priorities—and why they have many owners eyeing 2024 as a potential exit year.
- Commentary on year-to-date sector M&A activity and the current drivers of premium valuations.
- Insights and commentary from Capstone’s senior bankers on recent notable transactions and sector trends.
Capstone Partners’ Consumer Investment Banking Team provides M&A, capital formation, and financial advisory services to the owners of middle market businesses in the consumer and retail industries. Our team partners with leading mid-to-large sized consumer businesses that serve growing end-markets. For more information on the E-Commerce M&A trends featured in this report or to speak with one of our Consumer Investment Banking Team members about how to grow, value, and/or sell your company, we are here to help. Contact us today to start a conversation.
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