With inflation surging, many families are getting more selective about how they spend. Private equity funds and others looking to acquire companies that make or sell products for consumers are getting choosier for much the same reason.

In the consumer space, as in most industries, the underlying driver of dealmaking is a large pool of private equity looking for investments. Existing consumer companies, many of them backed by private equity, are also looking to grow through acquisition. According to Axial’s members, both groups, are scrutinizing deals more carefully.

Many financial investors have paused to understand consumer behavior in the current economy and figure out how families are most likely to spend money over the next few years. A warning came in second-quarter earnings when both Walmart and Target resorted to heavy markdowns to clear unsold inventory.

“When you see big retailers have a glut of inventory, it gives you pause about the growth trajectory for many companies moving forward,” added Logan Bohlender, Vice President at SDR Ventures. “Value comes down to consistency and growth potential.”

SDR Ventures’ extensive experience in the Consumer Industry includes successful engagements and comprehensive coverage in a variety of sub-sectors including Pet, Health & Wellness and Food & Beverage. While SDR is incredibly proud of our clients’ success in these sectors, we continue to strive for excellence in all areas of the lower middle market and provide all of our clients with the resources they deserve during the most impactful financial decisions of their lives. To learn more about SDR’s Consumer Industry experience, please click here.

“SDR’s ongoing relationship with Axial has proven to be incredibly fruitful as we continue to find ways to ensure that our clients receive the level of service they deserve. Beyond our use of Axial’s deal platform, we are thrilled to be a regular contributor to their market studies and thought leadership content. While this recognition is a true testament to our dedication to serving founders and entrepreneurs in the Consumer Industry, we continue to strive for excellence across all sectors of the lower and middle market.” commented Scott Mitchell, Managing Director at SDR Ventures.

In addition to being recognized on the Axial 2022 Consumer Top 50, SDR Ventures has appeared in Axial League Tables a total of seven (7) times since 2019, on the 2022 Industrials Top 50 and on the 2022 Healthcare Top 50. SDR was the sell-side advisor on two of Axial’s Top Deals, once in 2019 and once in 2021. SDR has closed three (3) deals via Axial.

To read Axial’s comprehensive coverage of the Consumer Industry and access a complete list of the 50 recipients, please click here.

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