While deal volumes for large, lower-risk businesses will stay at 2015 levels, valuations and liquidity that drove the “frothy” seller’s market in 2015 are giving way to a more balanced market.

1. Consumer and Retail M&A
Executive Report 2016

2. Valuations and liquidity that
drove the “frothy” 2015
seller’s market are giving way
to a more balanced market.
Consumer and Retail M&A

3. The growing spread
between investment-
grade and high-yield
financing will create
a split in consumer-
retail M&A.
Consumer and Retail M&A

4. 75 percent of U.S. and European
executives in the survey project
M&A activity levels at the same
or better than 2015.
Consumer and Retail M&A

5. Smaller and
relatively riskier
deals in 2016 will
face financing
challenges and
may fail to be
realized.
Consumer and Retail M&A

6. Five strategic insights
on consumer and
retail M&A in 2016:
1. Consolidation
remains critical
2. Wanted: new paths to growth
3. Capital heads west
4. Big bets on India
5. PE firms face challenges
Consumer and Retail M&A

7. Strategic Insight #1
Established firms will continue
to harness consolidation to improve
their bottom lines.
Consumer and Retail M&A

8. Strategic Insight #2
M&A focus on target companies
with disruptive digital capabilities
will drive growth and profitability.
Consumer and Retail M&A

9. Strategic Insight #3
Ongoing struggles of major
Asian economies have
renewed investment
interest in the
United States
and other
Western markets.
Consumer and Retail M&A

10. Strategic Insight #4
68 percent of survey
respondents have
a positive outlook
on M&A activity
in India.
Consumer and Retail M&A

11. Strategic Insight #5
PE firms that buy
smaller, riskier
businesses will
find it challenging
to finance and
complete deals.
Consumer and Retail M&A

12. For more information about
A.T. Kearney’s approach to
Consumer and Retail M&A,
please visit:
www.atkearney.com/consumer-products-retail/
cirp-ma-executive-report