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Consumer M&A Watch – April 2021 Coverage

By Emily Halstenberg | April 15, 2021

E-commerce Edition – April 2021

Actionable intelligence for leaders in the Consumer Products and Retail industry

The impact of COVID-19 on consumer behavior is undeniable. Consumers have shifted shopping behaviors to the digital world. As a result, more than 75% of Americans tried out new products or services that they want to continue using in the long-term. This shift in consumer behavior created a never before seen increase in global digital commerce activity. Consumers doubled down on digital as the year went on, culminating in a 56% growth in Q4, according to data from the Salesforce Shopping Index.

It is believed that these changes in behavior will not simply reverse when the situation around COVID-19 improves, but rather that the behaviors will stay as many consumers see the convenience and efficiency in purchasing products and services online. This also confirms a survey by McKinsey about consumer sentiments in the US, which reports that about 40% of Americans see cost savings when shopping online and with as much as 70% of Americans believing that COVID-19 will have a lasting impression on personal routines.

These tailwinds are beginning to manifest themselves across the entire marketplace. Those taking advantage of these tailwinds are e-commerce platforms such as Adobe, Salesforce, Shopify, technology service organizations implementing these platforms, and consultancies advising their clients on improving market share in the current marketplace. 7 Mile has advised many companies in this space on their transactions, such as Zilker in its sale to EY and Something Digital in its sale to Genpact. Zilker is a digital consultancy and systems integrator focused on creating lasting and valuable customer experiences, with deep sector experience in consumer products, healthcare, financial services, energy, and utilities. Something Digital also has deep expertise in e-commerce and is a digital specialist partnering with industry-leading enterprise accounts to help them build, maintain, and optimize robust e-commerce solutions.

The marketplace continues to show the same velocity and momentum in 2021 as it did at the end of 2020, and consumer and investor appetite continue to reflect the tailwind market. Consumer stocks continue to trade at healthy revenue and EBITDA multiples, with Revenue multiples staying steady between 4x and 5x over the last year, and EBITDA multiples continue to hover around 20x.

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See our latest Sectorwatch research reports for a comprehensive list of Consumer industry M&A activity and valuation trends.

About 7 Mile Advisors

7 Mile Advisors provides Investment Banking & Advisory Services to the Business Services & Technology industries globally. 7 Mile Advisors advises on M&A and private capital transactions, and provides market assessments and benchmarking. As a close-knit team with a long history together and a laser focus on our target markets, 7 Mile Advisors helps its clients sell companies, raise capital, grow through acquisitions, and evaluate new markets. For more information, including research on the M&A markets, visit www.7mileadvisors.com.

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