Activity in the UK Food and Beverage Sector in the First Tertial of 2009 – insolvencies drive deal flow

May 18, 2009

In the article below, Mark Lynch a founding partner of Food & Beverage Co. M&A specialists Oghma Partners, updates his 2007/8 M&A Review with a look at the activity recorded in the first third of 2009.

Further reduction in activity

M&A activity in 2008 vs. 2009 declined by around one third in the UK food and beverage sector, this trend appears to have continued in the first tertial of 2009 with a modest 22 deals identified in the period vs. 33 for the comparable period in 2008. The only bright spot in this modest level of activity is that it appears to be on par with the trends for the second and third tertial of 2008 and therefore, perhaps like the economy as a whole, marks a bumping along the bottom for deal activity rather than a deterioration vs. the level of activity in the last eight months or so.

Activity in the UK Food and Beverage Sector in 2008 vs. 2007

January 2, 2009

In the article below, Mark Lynch a founding partner of Food & Beverage Co. M&A specialists Oghma Partners, reviews the outlook for merger and acquisition activity in the UK food & beverage sector in 2009 in contrast to activity in 2007 & 2008. He also assesses the outlook for food company valuations.

Sentiment Stymies Action in the Food & Beverage sector

2008 saw an across the board reduction in M&A activity (by volume) with 71 deals identified in the year vs. 114 in 2007. This roughly one third decline in deals has been caused by, amongst other things; valuation uncertainty prompted by volatile equity markets; a sharp reduction in the availability of finance as crisis hit banks held back on lending and a withdrawal of activity by private equity players.