Despite the numerous lockdowns throughout the COVID-19 pandemic, the essential nature of the Agribusiness, Food & Beverage sector has seen diversification and growth opportunities for many of the market participants.
With 1,014 global transactions for the sector from 1 July 2020 to 30 June 2021 (1,104 long term average), Agribusiness, Food & Beverage has shown its resilience and proven itself as a particularly attractive sector for investors.
The effects of the pandemic have been observed in acquisition trends, with greater investment activity in areas supporting changing consumer behaviours and product innovation, as a result of the reliance from Australian’s on local supply due to global supply chain disruptions and workforce challenges. That’s why it’s no surprise that Packaged Foods and Meats, Agricultural Products, Distillers and Vintners were key sub-sectors for investment and IPO activity.
But beyond these sub-sectors, small to mid-sized businesses have proven themselves as particularly appealing acquisition targets – accounting for 75% of Australian deals during the 12-month period. Significant investment in innovation and technology in this category is making these businesses appealing acquisition prospects, peaking buyers’ interest to acquire IP, streamline production, become more sustainable and optimise supply chains.
Download our report to learn more about the Agribusiness, Food & Beverage sector’s resilience when faced with changing market trends due to the COVID-19 pandemic, key areas of investment, and the factors leading to what we believe will continue to be a strong year for M&A activity in this sector.
While selling or acquiring a business is a common practice, many of these deals are a result of many months of market positioning, valuations, negotiations and gaining insights from sector trends. To ensure you are market ready, don’t hesitate to reach out to our specialist advisors for an initial discussion in the context of your organisation.
