B2B deal flow was down somewhat in 2Q 2014, due in part to the high deal flow seen in 1Q. In all, PE firms invested about $93 billion in the U.S. B2B industry in 2Q through 446 transactions. Total capital invested in 2014 will easily beat last year's total of $97 billion. B2B companies are performing fairly well right now, particularly those that survived the recession, and the industry is benefitting from the re-emergence of the U.S. as a global manufacturing hub.
On the B2C side, PE interest in consumer products and services remains strong, despite persistently high purchase price multiples. 2Q 2014 recorded 93 PE transactions valued at a combined $19.3 billion; both figures were down from 1Q. PE firms are facing tough competition from strategic buyers in this deal-making environment, as strategics can afford to stretch multiples to high levels as they seek synergies and expansion of product lines and distribution channels.
More insight and in-depth information on PE investing in the B2B and B2C industries in 2Q 2014 can be found in the Private Equity Deal Flow Profiles published by McGladrey. Powered by PitchBook, the reports include current industry trends, deal activity and exit activity, as well as several insights from McGladrey professionals.
To access McGladrey's quarterly PE reports page, click here.