Axial
Axial
NEW YORK - October 13, 2022 - (Newswire.com)
Axial, the online M&A platform for buyers, advisors, and sellers of small and medium-sized businesses, has released its 2022 Lower Middle Market Consumer Top 50, profiling the platform's top 50 Lower Middle Market Consumer Investors and M&A Advisors. The report is based on consumer industry dealmaker activity on the Axial platform, including the number of deals brought to market, the interest levels those deals generate and the number of consumer deals that resulted in an executed LOI or successfully consummated transaction.
Download The Top 50 Lower Middle Market Consumer Investors & M&A Advisors
"What a difference a couple of quarters makes. Acquirers are much pickier about the deals they are ready to make. We are now firmly in a buyer's market when it comes to consumer M&A," says Peter Lehrman, CEO and Founder of Axial. "Inflation and interest rate hikes are playing out in consumer M&A among the retail, distribution and manufacturing companies that play in the lower middle market."
Deal activity for consumer-related companies has remained active on the Axial platform, increasing 41% in the first half of 2022 versus the same period a year earlier. That is a continuation of the trend in 2021, when deal volume also rose by 41% over 2020, despite the pandemic disruptions. But there is a noticeable divergence between the sorts of companies that buyers are looking for and those exploring a sale. More than 40% of buyers are seeking companies involved in manufacturing while 24% are targeting the services industry. On the sell-side, however, 42% of available companies are in retail and 27% in distribution and wholesale.
"Uncertainty is what's driving consumer-focused M&A right now," says Kristina Mayne, Director of Marketing at Axial. "Buyers are looking for recession-proof companies while sellers are pushing to get deals closed while they still can, driving up total deal volume and lowering acquisition prices. The year ahead will likely be marked by continued volatility as the market adapts to this new normal."
Axial is the online M&A platform for buyers and sellers of American small and medium-sized businesses. The company's pioneering deal sourcing and deal marketing platforms are trusted by professional acquirers, top lower middle market M&A advisors, and transaction-ready business owners. A select list of Axial clients and transactions sourced and executed via the Axial platform can be found here. For more information on Axial, visit www.axial.net.
###
Contact Information:
Kristina Mayne
Director of Marketing
kristina.mayne@axial.net
800-860-4519
Press Release Service by Newswire.com
Original Source: Axial Releases the 'Consumer Top 50,' Profiling the Platform's Top 50 Lower Middle Market Consumer Investors & M&A Advisors