RubinBrown Food & Beverage Year in Review 2013

M&A Activity Overview: Middle Market Deals

Middle Market Activity Mirrors Overall Deal Activity Based on a limited number of transactions that had transaction size information available, middle market M&A activity generally resembled that of the broader industry, as discussed on page 3 – with activity declining somewhat during the first half of 2013, and then rebounding over the remainder of the year. While middle market deal activity (where transaction size was available) declined slightly during the first quarter of 2013, the total number of deals closed in 2013 matched 2012, with quarterly deal frequency remaining in a relatively tight range of 22 to 28 transactions per quarter. The rebound beginning in the second quarter of 2013 signals that, despite a slight dropoff during the first quarter of the year, both the frequency and size of transactions were on pace with 2012 levels – the difference being that there was no threat of increased long-term capital gains tax rates to fuel deal activity, which might indicate that buyers are feeling ti i ti b t ll i diti i more op m s c a ou overa econom c con ons go ng forward.

Middle Market Transaction Activity

$1,000.0 

30 

$900.0 

29 

$800.0 

28 

$700.0 

27 

$600.0 

26 

$500.0 

25 

alue ($millions)

$400.0 

24 

$300.0 

23 

Enterprise V

$200.0 

22 

$100.0 

21 

$‐

20 

Q1  2012

Q2  2012

Q3  2012

Q4  2012

Q1  2013

Q2  2013

Q3  2013

Q4  2013

Source: Capital IQ Reflects transactions with implied enterprise values between $10 million and $1 billion. Min EV Average EV Max EV # of Deals

Food & Beverage Sector: 2013 Review

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