24 July 2015

With a number of large consumer companies, such as Hormel Foods and Mondelez International, making acquisitions outside their traditional realm, these acquisitions represent a “pivot” in strategy, Bruce Cohen, retail and private equity strategist at Kurt Salmon, shares with Mergermarket when discussing the current climate of consumer/retail M&A. Businesses are maintaining their core set of capabilities while venturing into markets with especially high growth or that resonate with a different set of consumers, Cohen explains. Many consumer businesses are also heavily leveraging technology, such as GoPro, InstaCart and Wayfair, Cohen says. With technology’s growing influence, the consumer sector is attracting more interest from venture capital than it has in years past. These businesses are not simply online businesses, Cohen noted, but products that offer “real advancements.”

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