Consumer markets deals insights: Year-end 2017 and 2018 outlook

Executive summary

The Consumer markets sector experienced a record breaking year in 2017 with total deal value of $311.6 billion, a 109% increase from $149.1 billion in 2016. This increase was anchored by strong megadeal activity in 2017 (transactions exceeding $5.0 billion) with eight megadeals amounting to $189.5 billion, compared with five megadeals in 2016 totaling $33.9 billion.

Looking to 2018, several factors bode well for consumer markets merger and acquisition activity. Technology and innovation is a main driver for deals and we anticipate a continued investment in emerging technologies including artificial intelligence, internet of things, augmented reality and 3D printing. Though there are some uncertainties regarding policy and regulation changes, most notably tax reform, the improving global economy could spur increased confidence and activity.

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Competition in the industry is fueling deal activity

  • Cross-border deal volume decreased in 2017 from 37% of total deal volume in 2016 to 32%, as companies increased focus on their domestic operations. We think that 2018 will see increased activity in Europe due to the stabilization and improving economy of that region. 
  • Private equity deal volume increased slightly in 2017 from 23% of total deal volume in 2016 to 24%, as PE firms are raising large funds and continue to acquire distressed companies.
  • Consumer markets IPO volume surged from seven in 2016 to 17 in 2017, raising $3.15 billion, up from $2.60 billion in 2016.

Contact us

John Potter
PwC | Partner | U.S. Deals Sector Leader
Tel: +1 (612) 596 4900
Email

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