The emerging landscape of 2017 consumer and retail M&A feels both familiar and foreign. While it mirrors 2016’s primary drivers of M&A, it also introduces a new set of financial and political complexities. In response to this evolving market, A.T. Kearney offers three strategic insights to navigate the road ahead.

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Consumer and Retail M&A Executive Report 2017
Off to New Peaks
in Uncertain Times

2. Riding the wake of 2016’s
near record-breaking
growth, consumer
and retail M&A in
2017 will yield a
similar level of
deal-making.
Consumer and Retail M&A Executive Report 2017
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3. In 2016, consumer and retail M&A reached post-
recession highs, fueled largely by megadeals—
consolidations valued at more than $1 billion.
Consumer and Retail M&A Executive Report 2017
Sources: Dealogic 1/1/2000 to 12/31/2016; A.T. Kearney analysis
20102009200820072006
21%
(20%)
7%
78%
(3%)
8%
(22%)
(70%)
11%
50%
(1%)
2%
(6%)
5%
(9%)
28%
(2%)
(8%)
(12%)
22%
9%
31%
2011 2012 2013 2014 2015YOY growth
M&A deal volume
M&A deal value
2016
$231 $237 $249
$318 $294
$358
$469+12%
$154
$512
$474
$267
Consumer and retail M&A activity level
(US$ billion)
+31%
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4. Meanwhile, deal multiples
dropped from 2015.
Consumer and Retail M&A Executive Report 2017
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5. As a result of these market factors, financial
buyers were sidelined, giving way to strategic
acquirers with strong balance sheets and
synergy with target companies.
Consumer and Retail M&A Executive Report 2017
Sources: Dealogic 1/1/2000 to 12/31/2016; A.T. Kearney analysis
20102005 2006 2007 2008 2009 2011 2012 2013 2014 2015 2016
Financial StrategicM&A deal share by buyer type
80%
56% 54%
70% 74% 68%
57%
70% 76% 78% 84%
51%
20% 30% 26% 32%
43%
30% 24% 16%22%
46%49%44%
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6. 2017 is set to mirror 2016
in its primary drivers
of M&A:
• More growth in consumer
and retail M&A
• Importance of consolidation
• Steady or increasing capital
access and balance sheet
strength
Consumer and Retail M&A Executive Report 2017
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7. Several new factors
have complicated
this year’s M&A market:
• Potential return to
sky-high multiples
• Political uncertainty and
rising nationalism
• More pressure on consumer
companies
Consumer and Retail M&A Executive Report 2017
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8. Tracking last year’s trends and
forecasting tomorrow’s challenges,
A.T. Kearney offers three insights
for navigating the emerging consumer
and retail M&A market.
Consumer and Retail M&A Executive Report 2017
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9. 1. Value at the Extremes:
Mega and Small M&A Deals
The market will see megadeals
driven by consolidation,
small deals focused
on new growth
and innovation,
and a vanishing
middle market.
Consumer and Retail M&A Executive Report 2017
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10. 2. Increased Activity from Private
Equity and other Financial Buyers
Motivated by slashed costs and a new,
synergistic focus, financial buyers
will step back into action.
Consumer and Retail M&A Executive Report 2017
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11. 3. Growth across Markets
International political
uncertainty will lead to
a focus on domestic
M&A, and high-value
deals will come
to all markets and
geographies.
Consumer and Retail M&A Executive Report 2017
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12. Consumer and Retail M&A Executive Report 2017
A.T. Kearney is a leading global management consulting firm with offices in 40 countries.
Since 1926, we have been trusted advisors to the world’s foremost organizations. A.T. Kearney
is a partner-owned firm, committed to helping clients achieve immediate impact and growing
advantage on their most mission-critical issues. For more information, visit www.atkearney.com.
Interested in learning more about 2017’s
consumer and retail M&A forecast?
Learn more at www.atkearney.com/consumer-products-
retail/cirp-ma-executive-report
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