Currency volatility pressures B2C space; B2B set to keep slow growth trajectory
June 02, 2016
RSM US has released the first set of its Q2 2016 Industry Spotlights. Powered by PitchBook data, the reports offer a comprehensive viewpoint on the trends driving M&A, private equity and exit activity across the B2C and B2B industries. In addition, this set of reports includes detailed sector-specific spotlights, with a section dedicated to restaurant and retail deal activity in the B2C report and a dive into the automotive aftermarket and supplier space in the B2B edition.
While rapidly changing consumer spending trends have negatively impacted B2C businesses for a few quarters, global currency volatility has also become a much more pronounced headwind as of late. Dealmakers continue to look for worthwhile M&A deals, yet the currency implications are difficult to assess. With seller expectations remaining high, transactions will likely close at a slower pace through 2016.
With growth in the B2B sector typically following the general economic and market trajectory, transaction counts should continue to move lower, as many expect the global economy to remain tepid and uncertain. Transaction multiples will likely soften, yet Tier 1 assets coming to market will garner the same expensive processes we've seen over the past couple years.