Open for Business: Q2’24 M&A trends in C&R

Here are some key trends and insights from the second quarter:

• Consumer and retail (C&R) mergers and acquisitions (M&A) remained sluggish in Q2 2024, with 526 deals announced, a 1.5 percent drop from Q1 2024 and a 10.4 percent decline year-over-year.
• Private equity firms showed signs of re-entering the M&A market, with 110 deals announced in Q2 2024, up from 95 in Q1 2024.
• Food, beverage, and tobacco accounted for 142 consumer deals, up 22.4 percent from Q1 2024, while personal, home care, and nonfood and beverage consumer packaged goods companies announced 70 deals, a decrease of 16 from the previous quarter.
• Retail M&A transactions declined 3.3 percent to 266 in Q2 2024, with restaurant deal value rising 95 percent to $2.1 billion, offset by an 88.9 percent decline in retail value.
• The outlook for the second half of 2024 remains promising, with the Federal Reserve potentially lowering interest rates sooner than expected, which could lead to an increase in M&A activity.

As we move forward, we anticipate a resurgence in C&R M&A activity, with companies strategically investing in technology, alliances, profitability, and brand equity to capitalize on an improving economic landscape. Download our paper to gain more insights on M&A trends in the C&R sector.