We are pleased to announce the launch of our latest Deloitte Consumer Products M&A Survey. This is the seventh biannual survey of CEOs, CFOs, M&A directors and investors across the European Consumer Products sector. The report provides insights on the key trends underlying M&A activity in the European Consumer Products sector, as well as our view of M&A activity and trading prospects over the next 12 months.
In this report, we see that whilst the potential for economic shocks remain, there are a number of indicators that suggest deal activity levels are now heading in the right direction.
Below are some of the key themes emerging from the survey:
|Optimism is at its highest – 70% of the respondents feel optimistic about financial prospects for Consumer Products companies over the next 12 months – up from 56% six months ago.|
|Striving for growth – Growth strategies look to be returning to the boardroom agenda with international expansion and obtaining growth in adjacent categories seen as main drivers for M&A activity. Customer engagement remains a key area of focus with increased investment in new channels and marketing seen as a priority.|
|Cash reserves start to stimulate deal activities – The top 30 listed UK Consumer Products companies hold around £11.1bn of cash reserves even allowing for some of the recent major investments by some of the larger players.|
|Price expectation gaps continues to stall potential deals – Although things look to be moving in the right direction, some barriers still remain with over a third of our respondents highlighted price expectation gaps between buyer and sellers as being the primary obstacle to increased M&A activity. Other barriers include economic uncertainty and shareholder and director caution.|