Discover the latest insights into consumer retail trends and the dynamic landscape of retail M&A as we dive into a broad market analysis for 2025. With the retail industry facing significant challenges, our analysis reveals that major shifts in valuations, due diligence, and post-merger integration are on the horizon.
Having navigated the complexities of post-covid supply chain shocks and input inflation which required significant pricing action, Consumer and Retail (C&R) CEOs are back to focusing on delivering much-needed volume growth.
Yet, for many sub-sectors, volume growth will come second to volume preservation. Facing pressure on consumer spend from declines in disposable incomes, shifts towards unbranded products and waning product loyalty, many consumer goods companies are struggling to arrest declining volumes.
Looking ahead, we expect 2025 to be characterized by a more ruthless review of dilutive and non-core businesses as organizations focus on their core. However, activity will vary by region and by sector. Alongside strategic divestments, expect to see significant bolt-on activity as organizations look for lower-risk, above-average growth opportunities.
This report provides valuable insights to help dealmakers act with confidence in what we expect to be a more active year for M&A ahead.
Download the full report to read our round up of 2024 and our predictions for 2025.
Here are five key trends that should drive dealmaking in 2025:
01
Core is the deal
C&R companies will look at evaluating their portfolios and divesting non-core assets, product lines and subsidiaries that do not align with their long-term strategic objectives.
02
Change in leadership
2024 saw leadership changes at many large players in the C&R space and our analysis suggests these new leaders are particularly keen on bolt-on acquisitions.
03
Bolt-on acquisitions
Anticipating continued economic uncertainty and where risk appetite is limited, expect to see an uptick in bolt-on acquisitions.
04
Activist pressure
Expect more activist investor attention on the C&R sector in 2025 as activists look at other players with unaddressed value creation opportunities.
05
Emerging direct investors
With new direct investors such as Sovereign Wealth Funds moving more aggressively into deal markets, expect greater competition for deals.
For more details, download the full report.
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