Chris Kampe, Managing Director, Tully & Holland, Discusses Increased M&A Activity with The B.O.S.S. Report, The Bicycle, Outdoor, and Snow-Sport Trade Newsletter
May 27, 2010 - The B.O.S.S. Report, The Bicycle, Outdoor, and Snow-Sports Trade Newsletter quotes Chris Kampe, Managing Director of Tully & Holland's Retail and Consumer Group in an article titled "Outdoor M&A Market Heats Up Again," published in the May 17, 2010 issue. The B.O.S.S. Report is the only trade newsletter servicing the Bicycle, Outdoor, and Snow-Sports markets.
The article examines the increase in M&A activity in the outdoor/sporting goods space due to the improving economy, easier access to capital, and a recovering equity market. Chris Kampe comments, "The valuation gap between buyers and sellers continues to narrow. Looking at public company valuation multiples, our sporting goods index is trading at nearly 11x EBITDA, up from less than 6x EBITDA one year ago. Notably, a great deal of this valuation is being driven by strong forward growth expectations."
Chris expects to continue to see more strategic buys in the near term. He adds, "Healthy sporting goods companies, with cash or debt capacity, have been taking advantage of reasonable valuations and, in many cases, strong seller motivations, to expand their brand portfolio or product line, take a competitor out of the market, or gain new distribution into new geographic markets."
Tully & Holland, Inc. is a leading US investment bank that provides sophisticated corporate finance advisory services to consumer product companies with special emphasis on retailers, multi-channel marketers, food companies, and consumer product manufacturers/distributors. Chris Kampe, Managing Director of Tully & Holland's Retail Group, has 20 years experience in investment banking and corporate finance.