The Winning M&A Advisor [Vol. 1, Issue 3]
Welcome to the 3rd issue of the Winning M&A Advisor, the Axial publication that anonymously unpacks data, fees, and terms…
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An aging population increasingly concerned with health and natural living is driving demand for varied subsectors within the health and wellness industry, according to SDR Ventures’ Q1 2016 report on the space. “Dietary consciousness is a leading trend for aging consumers as sales for digestive and anti-aging supplements have risen, specifically products produced with natural and organic ingredients,” according to the report.
Active Lifestyle apparel and devices – including “ath-leisure” clothing lines and devices like fitness bands and heart monitors – were responsible for many of the transactions in the sector this past quarter.  “Consumers are trending toward spending their growing disposable income on affordable athletic wear for everyday use,” according to the report. SDR also notes that the social fitness trend – “where users on social media post about workouts, meal preparation, and active lifestyle” – seems to be here to stay, driving an increasing interest in products devoted to a healthy lifestyle.
Other trends include:
Overall M&A activity in the sector is slightly below 2015 levels, with approximately 400 deals projected for 2016, compared to 500 last year. Capital invested is also down, with approximately $5 billion anticipated this year vs. $15 billion in 2015.
The sector has seen average enterprise multiples of 15.83x, compared to the S&P 500 Average of 12.69x.
Read the full report from SDR Ventures here >