Latest research from leading business and financial advisory firm Grant Thornton UK LLP confirms that the overall picture for deal activity in the second quarter is a positive one. Total food and beverage deal value rose significantly in Q2 2014, rising by 109% compared with the first quarter, and by 16% compared year on year.
In contrast, overall deal volume was down by 24% in Q2 compared to the previous quarter. Although when comparing the first half of 2014 with same period in 2013, deal volumes were higher by 5% for 2014. Soft drinks and wholesale and distribution were the most active sub-sectors, each accounting for 17% of quarterly deal volume.
Claire Elcock, director at Grant Thornton in Leeds, commented: “Continuing appetite is apparent among both potential acquirers and vendors in the food and beverage sector which is being driven by a more upbeat UK economy. Valuation multiples are rising, with the increase being driven partly by buoyant equity markets and by the availability of debt on borrower-friendly terms.”