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M&A Insights: Summer 2020

 

As the current environment evolves and we all adjust to the new normal, the Forbes M+A Group is dedicated to keeping our team, clients, and friends of the firm up to date. Our team continues to remain very active, with as many transactions in the works as before the pandemic. Through these transactions, we are experiencing firsthand the effects of the virus on a variety of industries. We will continue to monitor market trends and share our experiences in order to grasp, internalize and ultimately, exceed, our clients’ goals.

The initial shock of the pandemic essentially put a pause on deal activity. Many buyers had to shift their focus from acquiring new companies to maintaining and providing support for their existing portfolio. Other buyers became more conservative with their funds out of fear of their ability to outlast the pandemic. These factors, combined with other concerns, resulted in deals going on hold or even dying out. However, now that the first half of 2020 is behind us, you may be wondering what to expect going forward.

Fortunately, the market appears to be showing signs of resumed deal activity. Private Equity is still sitting on upwards of one trillion dollars in funds. Sponsors will need to be more diligent in their investments but will not neglect M&A. Strategic acquisitions of industries that have been deemed “COVID19-resistant” will continue to be targets.

Additionally, as election season sits on the horizon, some sellers are pushing for end of the year close dates. With the possibility of a new party overtaking the White House come January, the looming specter of tax increases has caused sellers to recalibrate price expectations as they race to the finish line.

In this newsletter, we highlight how these trends in M&A are affecting some of our focus industries.

 

Food & Beverage Industry Insights and Post-COVID predictions

Food & Beverage M&A activity in the first quarter of 2020 was off to a strong start with recent activity being driven by companies looking to meet shifting consumer needs and preferences. While COVID-19 has caused major disruptions throughout the industry and slowed M&A activity, public comparables remain high with a median EV/EBITDA multiple of 12.7x.

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Forbes M+A Awarded Colorado M&A Firm of the Year!

Forbes has been selected as the M&A Advisory Firm of the Year in Colorado – 2020 presented by Global Advisory Experts, for the second consecutive year. “Over the past 15 years, Forbes has made it a mission to really grasp, internalize and ultimately, exceed, our client’s goals, said Bob Forbes.

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We’ve Moved!

Please make note of our new address:

6400 S. Fiddlers Green Circle, Suite 850, Greenwood Village, Colorado 80111

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Spring Digital Gaming Report

Digital gaming, despite the global pandemic, continued to surge forward with unprecedented growth across all channels; streaming platforms saw record viewership while consumer spending was at its highest since 2008.

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About The Forbes M+A Group

Founded in 2004 with offices in Denver, CO and Salt Lake City, UT, The Forbes M+A Group is an award-winning investment bank with expertise in mergers and acquisitions, capital formation, and financial restructuring within the middle market. The group has over 15 years of experience delivering outstanding results for business owners, entrepreneurs, and investors. Advisors at The Forbes M+A Group have 250+ years of combined experience in international transactions across a wide variety of industries. The Forbes M+A Group has been recognized as a leader within the middle market as a regional M&A Firm of the Year for the past 5 years.