In a digitised world with changing customer needs, existing business models and value propositions of consumer products, companies no longer naturally provide the sustainable competitive advantages that existed in the past. Companies in this sector deal with fundamental developments, challenges and opportunities in varying degrees. Sustainability and customer experience are keywords here.
Mergers and acquisitions activity varies according to sub-sector as cash-rich private equity funds and large global players seek out ways to benefit from the new climate of consumer engagement.
Large UK corporates are also reacting to the changes in consumer behaviour, but appetite from investors is likely to be mitigated by uncertainty over consumer spending and the reliability of the supply chain.
The key for sellers is to be in the right niche. Established players are conscious of their position in the supply chain and where the added value of their company lies. Concept and product development are central to delivering a data-driven offer with attractive, focused choices for individual consumers and sound margins for retailers and wholesalers.
Direct customer feedback makes it easier for wholesalers to refine their product range, contributing to the success of the wider industry rather than asserting themselves in competition with retailers.
Companies are pioneering deliveries directly to the customer and the marketing of their own brands or concepts. Flexible logistic possibilities and integration between e-commerce platforms and enterprise resource planning (ERP) systems are a key driver for the future of this industry.
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Companies investing in digitisation are of great interest to strategic buyers and private equity parties. The specific capacities and the scalability of a company can be important reasons for acquisition, reflected in attractive valuations. Even companies undergoing a period of transition are on the radar of strategic buyers and private equity parties, who see opportunities to create synergy or implement a buy-and-build strategy.
Entrepreneurs and leading companies in consumer products are aware of the changes they face. Investment can be a fast way to build specific capacities, and partnership provides a route to shaping your growth strategy with an experienced partner. A targeted acquisition or joining with another company may be your logical next step, or perhaps you want to start withdrawing some of the value the enterprise has accumulated.
Each year, more than a thousand entrepreneurs in this sector use the Marktlink Multiple to calculate their business value. We regularly guide the transaction process for companies in the consumer products sector and have unrivalled market knowledge and a substantial portfolio of potential buyers and sellers.
Are you looking for a partner or an investor, or do you want to join forces with another company? Marktlink can help you realise your ambitions. Always committed, independent and professional, we have a large national and international network, and detailed knowledge of local and global markets.
Our specialists will use their knowledge and experience proactively, to help you find the right successor or implement your growth strategy in the consumer products sector.
Contact us now for more information.