May 10, 2010
With Internet Retail being one of the fastest growing sectors in the overall retail industry, and with a strong fourth quarter in 2009, we expect retailers will continue to look to online as a next generation vehicle for growth. By contrast, during 2009 the M&A Internet Retail market was dismal. However it is beginning to show signs of recovery and we expect M&A volume to continue to accelerate over the next five years as the industry consolidates around brand name merchants.
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April 6, 2010
Merger & Acquisition activity in the sporting goods sector increased markedly in the first quarter of 2010 driven by corporate divestitures of non-core assets. Several publicly held sporting goods companies took advantage of improving market conditions and shed unwanted divisions. These assets were primarily snapped up by strategic buyers, many of whom were international buyers, not financial buyers.
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March 30, 2010
Following three years of 3% compound annual dollar growth rate, the cracker market in the U.S. is approaching $4B in sales dominated by three companies, Kraft, Kellogg and Pepperidge Farm (owned by Campbell Soup). Currently these “big three” control greater than 75% of total cracker sales. However, competition continues to increase as two major marketers, PepsiCo and Procter & Gamble, continue to focus on the segment.
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February 11, 2010
Amid multiple data points indicating that a consumer recovery is slowly underway, more than a dozen retailers successfully raised capital through private placements and public offerings. Retailers receiving funding generally operated in one of three segments: 1) discount/value/off price; 2) health & wellness; or 3) internet retailing, all believed to have superior growth prospects.
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October 30, 2009
While the value of worldwide M&A deals is down 38.2% over 2008, global equity and debt capital markets activity is up. As valuations continue to stabilize, expectations solidify, and credit markets continue to thaw, 2010 may see a wave of activity especially since private equity's overhang remains significant, some estimating at $400 billion.
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September 8, 2009
While rising unemployment, tight availability of credit, and lackluster retail sales have been widely covered in the media, several emerging positive trends, including rebounding retail valuations, have not. The S&P Retail Index increased more than 50% since March; consumer confidence lifted off its catastrophic lows; retail M&A activity has increased, and economists now believe that the recession may have ended during the second quarter of 2009.
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August 17, 2009
M&A activity in the food & beverage sector ticked upwards in the second quarter of 2009, following a gradual decline over the previous 10 quarters. Aggregate reported deal size for transactions announced in the first half of 2009 ($1.984 Billion) was less than one-third of aggregate reported deal value in the first half of 2008 (6.859 Billion) - evidencing the decline in mega-deals and reflecting overall market trends since the onset of the credit crisis in Fall 2008. Reported transaction values reached a low of $587 million in the first quarter of 2009, rebounding to $1.4 Billion in the second quarter of 2009.
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July 27, 2009
In the first half of 2009, M&A volume involving North American targets was $317.3 billion, down 35% from the first six months of 2008. M&A activity would look even worse if not for a couple of blockbuster deals in the pharmaceutical industry. Pfizer is buying Wyeth for $68.1 billion, while Merck is acquiring Schering-Plough for $45.9 billion—the two biggest deals in the U.S. in 2009. There have also been big deals sparked by companies' economic difficulties, such as Chrysler's sale to Fiat.
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July 24, 2009
M&A deal activity in the internet retail sector has remained strong over the past 10 quarters but has recently fallen off in Q2-09. Aggregate reported deal size for transactions announced in the first half of 2009 ($6.4Billion) has increased four fold over aggregate reported deals value in FY 2008 ($1.3 Billion). The increase in FY 2009 is due primarily to two mega-deals. While we expect transaction volume to remain steady in the coming quarters, revenue and EBITDA transaction multiples are expected to remain below those of prior years.
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June 5, 2008
Sporting goods valuations have in large part held up, unlike other consumer discretionary sectors, and both private equity firms and strategic acquirers remained active buyers.
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May 9, 2008
Consolidation within the Retail Imagery, Graphics and Signage sector, which is highly fractionated and competitive, is likely to accelerate in the years ahead.
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April 15, 2008
According to the US Census, there are over 8,000 giftware, collectible, tableware and home décor accessory importers, wholesalers and distributors in the US. For years, these firms scoured the world and brought low-, mid- and high-end tzotchkes, knick-knacks, and stuff to the US market. Today, these companies are under siege by the trends of globalization, disintermediation, increasing retail competition and the weakening dollar. Though the number of establishments was relatively constant from 1997 to 2002, the latest year where figures are available, there is little doubt a consolidation is occurring as firms are being sold and liquidated. The days of a marketplace full of small importers and wholesalers are waning, to be replaced by a directory of larger, more sophisticated designers, and retailers importing directly.
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April 15, 2008
Merger & acquisition activity in the US food & beverage industry continued at a strong pace in 2007, driven by three major trends: strong consumer demand for food & beverage products that promote health & wellness, sharply-rising raw material prices, and private equity investors’ heightened focus on CPG companies. As all three factors continue to influence the sector, expect further consolidation in many sectors of the food & beverage industry in 2008.
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December 11, 2007
The past ten years have been a period of transition among the top 100 direct mail catalogers
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October 2, 2007
Selling your company is generally a once in a lifetime event fraught with emotion and filled with risk. Both money and a lifetime of work are at stake, therefore the considerations before and during a sale are vitally important. The process is important, and mistakes can cost a great deal, so one should proceed methodically.
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October 2, 2007
As an investment banker for middle market companies, my job is to do three things:
1. Sell businesses for owners who wish to exit or have a “liquidity event;”
2. Assist companies or private equity groups buy businesses;
3. Raise capital, either equity or debt, for growing companies.
My experience, and the many years of investment banking experience of my colleagues, has taught us a few things about the deal business. Some of the lessons have been hard, some profitable, but all well learned.
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July 12, 2006
Just-in-time deliveries and Internet connectivity has developed in such a way over the past ten years that many direct marketing businesses base their business model and success on virtual inventories. What do I mean by “virtual inventory”? Essentially, virtual inventory is drop shipping merchandise orders directly from vendors’ stock rather than the more traditional stocking merchandise in anticipation of demand. While there are exceptions, a company with virtual inventory should have the ability to achieve faster growth, better focus, and higher valuations than more traditional “stock and ship” companies.
Let us briefly discuss the risks and benefits of both models.
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June 1, 2006
In the last few months, the effects of increasing inflation are evident…increasing oil prices, upward wage pressures, higher interest rates, and the rising Yuan. So what is the impact of expanding inflation on multi-channel marketers?
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February 1, 2004
Based on third-quarter results from the publicly traded companies tracked, consumer catalogers had reason to be optimistic about holiday sales. Eighty-one percent of the marketers tracked for Catalog Age by investment bank Tully & Holland reported improved third-quarter sales.
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January 1, 2004
James Adams, Managing Director at Wellesley Hills, MA-based Tully & Holland, Inc. reports that the Financial Report for Catalog Age reflecting 4th Quarter revenue and net income.
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May 21, 1999
While mergers among giant public corporations capture headlines, small to medium-sized private companies are not immune to this phenomenon. It is easier to sell and finance mega-mergers like Chrysler Daimler-Benz and Amoco and British Petroleum, but what about selling mid-market companies? How do you sell your private business? How do you finance an acquisition? There are a number of issues that must be carefully examined by potential buyers and sellers before they even enter the market.
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May 21, 1999
The best time to sell your company is when its prospects are good. A buyer will pay more for a company that is well positioned for future earnings growth.
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