Oghma Partners T1 M&A Review (published this May) looks at transactions across the UK Food and Beverage universe for the first four months of 2011 and compares these deals with activity from 2007 onwards. Transaction multiples for many of the deals remains confidential and so any analysis is based upon an understandably narrow data set, however there is evidence that the price achieved for transactions has been increasing over the last year and a half or so. The improvement in rating would make sense. The trading environment though challenging has more visibility than two years ago. In addition, there are more buyers around as confidence has returned to the M&A market and debt has become more available than in 2008 or 2009. Finally, it is noted that the valuation of quoted companies, as measured by P/E or EBITDA ratio’s, has increased. The above suggests that a seller of a Food or Beverage asset today should achieve more for the sale of their business than they would have done a couple of years ago. The above issues and more is covered in Oghma Partners LLP T1 2011 M&A Review out today.
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Oghma Partners was established in 2008 and provides acquisition, divestment, fund raising and strategy advice to European food and beverage companies and investors. For further information on how Oghma can assist food and beverage manufacturers and distributors, please do contact us via phone or email.