KBS - Food Manufacturing - Market Insight

STRATEGIC INTERESTS OF PRIVATE EQUITY AND INVESTMENT BUYERS

Value Creation: Private equity firms often pursue operational improvements and strategic repositioning of acquired companies to create value before exiting through resale or public listings.

Long-Term Growth Potential: Many investment buyers are focused on sectors with growth potential, and the evolving landscape of consumers’ preferences towards certain products due to dietary, lifestyle and medical necessity, such as meat-free and gluten-free products, provides an opportunity to capitalise on the rapidly growing preference for ‘premium’ products amongst certain consumer groups. ESG Considerations: With the food manufacturing process being a resource heavy one, there is a growing emphasis on environmental, social, and governance criteria among investors, leading to an interest in companies that align with sustainable practices and renewable energy goals. The trends outlined above highlight the evolving landscape of food manufacturing and distribution M&A, characterised by consolidation, sustainability-driven innovation, and increasing private equity interest. investors: