Thomas Scott & Co works with a range of businesses in the retail and consumer goods market in order to plan and execute business sales. With over 250 client engagements to date, we can support business owners in a variety of ways allowing them to typically realise streamlined and higher value exits.
The M&A landscape remains strong, driven by the appeal of established brands and untapped growth opportunities. At Thomas Scott & Co, we have a network of over buyers, from MNC to listed buyers. Exploring a sale can open exciting new chapters for your business, providing the potential to thrive under new ownership while ensuring its core values and customer commitments endure. To learn more about how we can assist in selling your business—request a business valuation or contact Thomas Scott & Co today.
Our service is delivered to precisely match the unique needs of our clients, whether they are navigating the complexities of selling a business or planning for a long term exit. We are dedicated to delivering superior outcomes for our clients, ensuring their satisfaction and success every step of the way.
We pride ourselves on offering a quality service, tailored to exceed expectations. We believe in building relationships that stand the test of time. With each interaction, we strive not only to meet but to surpass our clients’ needs and aspirations, ensuring their journey with us is one characterised by excellence and lasting satisfaction.
We specialise in guiding clients through M&A landscape with clarity. Our team of advisors leverage their understanding of M&A to support at every stage of the process, from initial strategy development to due diligence and seamless execution, we offer tailored solutions that allow our clients to make informed decisions.
M&A Market
The UK M&A market for retail and consumer goods is currently experiencing a significant resurgence, driven by rising consumer demand and increased interest from both private equity firms and strategic buyers. In 2023, the sector saw deal values exceeding £30 billion, underscoring a strong recovery in M&A activity. This renewed momentum has been marked by several notable transactions in the latter half of the year, including Blackstone’s acquisition of John Lewis Partnership’s retail arm, JD Sports’ purchase of Footasylum, and Bain Capital’s takeover of Superdrug. These high-profile deals highlight the sector’s growing appeal to investors.
Key statistics illustrate the sector’s revival. The UK retail and consumer goods market is projected to grow at a compound annual growth rate (CAGR) of 7% over the next five years, bolstered by shifting consumer behaviours and business transformations. Consumer trends such as a preference for sustainable and ethically sourced products, the increasing demand for online shopping and omnichannel experiences, and heightened focus on personal well-being are reshaping the market. Companies that have adapted to these trends have seen profit margins increase by as much as 10% year-on-year, setting them apart from competitors struggling to pivot.
The M&A landscape within the UK’s retail and consumer goods sector is highly dynamic, with smaller enterprises showing considerable potential for growth. Scalable business models, particularly in e-commerce and franchise operations, as well as opportunities for international expansion, have garnered significant interest. These businesses present strong returns on investment, attracting a broad spectrum of buyers, including institutional investors, industry-specific acquirers, international buyers, operational investment firms, and strategic investors. Notably, private equity-backed firms were especially active in 2023, contributing to over 35% of the deal volume, reflecting their confidence in the sector’s long-term growth potential.
Looking ahead, M&A activity in the UK’s retail and consumer goods market is expected to remain robust throughout 2024. Analysts forecast a further 12% increase in deal volume, driven by factors such as debt refinancing, strategic consolidation, private equity returns, and the influence of significant prior investments, like Blackstone’s acquisition of John Lewis. Although economic challenges like inflation and rising capital costs persist, the sector’s ability to adapt to shifting consumer trends and technological advancements positions it well for sustained growth and vibrant M&A activity.
Our view on the current key statistics for M&A in the Retail and Consumer Goods sector
Last Updated: 30/11/2024
Thomas Scott & Co has experience valuing businesses across a wide range of markets, employing various methodologies to ensure accurate and reliable assessments.
Our approach in retail and consumer goods often begins with market-based multiples to establish an initial valuation range. We then typically refine this with more technical methods, such as Discounted Cash Flow (DCF) analysis or other market-appropriate techniques. Our commitment is to adopt a real-world and measured approach, providing valuations that are transparent and reflective of realistic outcomes in current market conditions.
To enhance valuation outcomes, we focus on identifying the strategies to maximise value. This may involve introducing competitive dynamics or targeting potential acquirers based on geographic alignment or anticipated synergies. This strategic approach enables us to deliver accurate valuations and quickly assess the demand for an acquisition.
For all businesses, we offer the opportunity to get a indicative valuation without cost.
We are an independent M&A advisory firm with operations in 3 continents utilising our headquarters in London, satellite office in Paris and partnership in New York. We specialise in selling businesses valued up to £500m, across 9 key markets typically exiting to trade or institutional buyers. As we are an independent firm, free from constraints, we pride ourselves on our ability to take a long term view on exits and work with clients to model their optimal journey.
Group Directors
We are an independent M&A advisory firm with operations in 3 continents utilising our headquarters in London, satellite office in Paris and partnership in New York.
We specialise in selling businesses valued up to £500m, across 9 key markets typically exiting to trade or institutional buyers. As we are an independent firm, free from constraints, we pride ourselves on our ability to take a long term view on exits and work with clients to model their optimal journey.
Group Directors
We provide market leading sell side M&A advisory services to clients located across the United Kingdom.
We help businesses to raise private capital at venture or growth stage.
We work with clients to structure a long term exit, typically via a succession plan for the owners.
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