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The consumer sector is bouncing back, with retail, food and restaurants expected to drive growth in 2014. Full-year figures published in the Deal Drivers Americas report by Mergermarket and Merrill DataSite indicate that the consumer industry accounted for 10.7 percent of value and 9.4 percent of volume of all M&A activity in 2013 in North America.
Despite a falling unemployment rate, expectations are that interest rates will remain low, fueling borrowing rates and encouraging high levels of activity among private equity. Strategists in the space continue to maintain large war chests for acquisitions, with unprecedented cash reserves. At the same time, rising consumer spending should fuel an increase in income across the consumer and retail industries, making sellers more attractive as their profits swell.
Industry experts predict that the sector growth will be driven by large established companies looking to fill gaps in their offerings by acquiring hot, fast-growing companies in 2014.
When investing in this dynamic, growing market you need a technology platform that enables you to keep your finger on the pulse of critical information that can affect your strategy.
Richard A. Martin Jr. is a senior director at Merrill Corporation, responsible for Merrill DataSite’s global marketing group. His 18 years of marketing experience in the United States, United Kingdom and Europe has developed Martin’s understanding of disparate business cultures and the global financial industry. Martin currently works with financial professionals to provide first class virtual data room solutions for their transactions and due diligence needs.