US consumer products M&A drops 48% YoY; B2B sees fewest 3Q deals since '13
December 07, 2016
In the wake of one of the more contentious and potentially game-changing US presidential election cycles in memory, hesitation on the part of buyers across many sectors is entirely reasonable. Especially given the possible shift in trade policies, which could impact importation costs, and tax cuts that may boost consumer spending in the short term.
With regard to consumer products, the rate of investment continues to slide despite interest on the part of private equity firms in strong brands. At $55.6 billion, M&A deal value in 3Q remained robust, though the number of closed transactions declined to 287, a YoY decrease of 48%. Find these details and more in the latest RSM US Consumer Products Industry Spotlight.
The business products and services (B2B) industry generally moves in close proximity to the global economy, and as wages grow, the question has become whether revenues can move to offset the increased cost of business. Tepid growth and uncertainty about the incoming US administration's foreign policy have dampened M&A activity and business investment plans. During 3Q, M&A transaction value ($23 billion) and volume (506 deals) amounted to QoQ declines of 68% and 29%, respectively, within the B2B sector. Find detailed analysis of these trends in the latest quarterly edition of the RSM US B2B Industry Spotlight.