Q4'23 M&A trends in consumer and retail: New year could see C&R M&A tailwinds

As we enter 2024, the C&R M&A market is poised for a comeback, with stabilizing macroeconomic conditions and a projected series of interest rate cuts by the Federal Reserve. These factors, coupled with significant amounts of unallocated capital waiting to be invested, will likely contribute to an upward trajectory in C&R deals, as corporates and private equity firms seek opportunities for long-term value, growth, and business transformation.

In 2023, the C&R sector's M&A activity experienced a muted year with deal volume decreasing by more than 20 percent and deal value dropping by more than 11 percent compared to 2022. However, as the economy stabilizes, a dealmaking bounce is expected, benefiting C&R sectors, enabling exits, and bringing new cashflows into the market. Companies pursuing M&A should focus on key considerations to meet consumer demands:

• Invest in technology for competitiveness and efficiency.
• Form strategic partnerships and acquisitions.
• Focus on sustainability-driven M&A opportunities.

Learn more about the evolving C&R industry's M&A landscape by examining the latest trends and insights. Download our paper, New year tailwinds: M&A trends in consumer and retail.