HMT’s credentials
The HMT Team has a clear understanding of what acquirers and investors will look for in terms of KPIs and how B2C businesses are likely to be valued in the market. Scale, growth, resilience, business model and margin are all likely to be areas of focus and while there is a definite pay off between pace of growth and profitability.
M&A activity in the UK B2C services sector remains active, supported by consolidation and investor appetite for scalable businesses with strong consumer propositions. Strategic buyers and private equity investors continue to target companies with established brands, recurring or repeat revenues and opportunities for geographic or service expansion. Technology-enabled businesses and those benefiting from resilient consumer trends are particularly attractive, while the fragmented nature of many B2C markets continues to create opportunities for buy-and-build strategies.
M&A activity in the UK food & drink sector remains active, supported by demand for differentiated brands, premium products and businesses aligned with evolving consumer preferences. Strategic buyers and private equity investors continue to target companies with strong brand equity, resilient margins and opportunities for international expansion or product diversification. Consolidation across the sector is also creating opportunities for buy-and-build strategies, while businesses benefiting from trends such as health and wellness, convenience and sustainable consumption continue to attract buyer interest.
In the short term we may find that inflationary pressures on households and pressure on savings limit the attractiveness of discretionary consumer products and services for investors and acquirers.
However, in the longer term the underlying drivers in the economy such as concerns about ethics and sustainability, a focus on health and wellness, affordability, experiences rather than things, localness and the impact of influencers will generate opportunity and growth for many volume B2C businesses, and these will be of continuing interest to investors, funders and acquirers.
While we may expect appetite for investment or acquisition of casual dining businesses to decline amongst mid-market private equity, there may be a compensating focus on experiential businesses where no investment in real estate or leases is required. At the same time Food and Drink businesses which appeal to the health and wellness narrative are likely to do well. The consumer purse will always be an attractive place to focus, therefore we can expect a buyoant consumer M&A market during the next few years.
In the short term, investors are less likely to back B2C businesses that are not at or very close to profitability unless there are significant mitigations.
Why HMT
Passionate
We are passionate about delivering an optimal outcome for our clients and helping them achieve their personal objectives. We understand entrepreneurial businesses because we are one.
Our Deals
Personal
Partners are supported by high-calibre professional staff who share our core values of enthusiasm, energy, entrepreneurialism and empathy to our client's objectives.
Our Team
Proven
Our Partners have unparalleled deal experience in the mid-market and are supported by a team of dedicated deal-doers with specialist capabilities and experience.
About Us
Connected
We have an extensive network of acquisitive corporates, institutional investors and debt providers both in the UK and internationally through our membership of our global network Cognos.
Our Network
