The Consumer & Retail sector saw a slight decline in M&A activity in Q1 2025, with 1,229 transactions closed (LTM) compared to 1,264 in Q1 2024. Valuation pressures persisted in Q1 2025 as Consumer & Retail buyers continued to navigate elevated interest rates and selective credit markets. Transaction volume declined modestly year-over-year, and median revenue multiples compressed to 1.2x from 1.4x in Q1 2024. Median EBITDA multiples fell to 8.6x, reflecting investor caution and a flight to quality. Strategic buyers lead the quarter accounting for 87% of all transactions reflecting the need towards capability-building and long-term growth strategies amid a cautious private equity environment.
Q1 2025 deal activity in the Consumer & Retail sector reflected a cautious market tone with transaction volume decreasing to 236 total transactions, as investors and strategic acquirers wait to see what long term policies the new administration will adopt. Median TEV/EBITDA multiples declined to 8.6x from 9.0x a year earlier, indicating a moderation in valuations that may present more attractive entry points for investors concerned about previous market highs. Revenue multiples also compressed to 1.2x from 1.4x. Investors shifted focus from high-growth stories to stable, cash-generative businesses. Strategic buyers remained active but disciplined, favoring acquisitions tied to essential services or evolving consumer preferences in a still-restrictive capital environment.
Strategic Acquirers: Strategic buyers represented 87% of Q1 2025 transactions (927), continuing to drive consolidation across fragmented consumer categories. Activity was concentrated in lifestyle brands, automotive retail, and experience-driven assets with long-term customer engagement potential. Examples include Escalante Golf LLC’s acquisition of Canyata Golf Club.
Financial Buyers: Financial buyers accounted for 13% of deals (143), with interest focused on scalable concepts and premium service platforms. Private equity firms remained selective, favoring assets with strong unit economics, brand value, and expansion runway.
Deal activity in Q1 2025 has continued to decline in the consumer & retail sector with 236 total closed deals for the quarter compared to 346 in Q1 2024. This downturn was primarily driven by heightened geopolitical tensions and economic uncertainties, which led to increased caution among investors. Despite this, certain sectors within the consumer & retail industry, particularly luxury fashion and beauty, showed resilience, with strategic acquisitions focusing on brand consolidation and market expansion. This indicates a selective but steady interest in high-value assets within the sector.1 2
Top U.S. States: California led all states with 113 transactions, followed by Florida (98) and Texas (84), underscoring the sector’s concentration in high-growth, consumer-driven markets.
Cross-Border Trends: U.S.-based targets continued to dominate activity, though interest from international buyers remained steady, signaling ongoing global demand for U.S. consumer and lifestyle assets. Examples include BroadPeak Capital’s acquisition of Roti Restaurants Inc.
| Target | Buyer | Value ($mm) |
| Bally's Corporation | Standard General L.P.; The Queen Casino & Entertainment Inc. | $5,700.00 |
| Mattress Firm Group Inc. | Acuity Brands Technology Services, Inc. | $4,000.00 |
| QSC, LLC | Gladstone / Proteus Enterprises | $1,200.00 |
| OB US Parent LLC/IMG Arena US Parent, LLC | OB Global Holdings LLC | $450.00 |
| Hilton Atlanta | Axonic Capital LLC | $187.00 |
| Target | Buyer | Value ($mm) |
| Tulsa RV & Marine LLC | Bell Camper Sales, Inc. | n/a |
| Mile High Run Club, LLC | FitLab, Inc. | n/a |
| Bill Kolb Jr. Subaru, Inc. | Georgica Auto Holdings, LLC | n/a |
| T & B Management, LLC | Artistry Restaurants, LLC | n/a |
| Canyata Golf Club | Escalante Golf LLC | n/a |
| Target | Buyer | Value ($mm) |
| ADERO Scottsdale Resort | LionGrove, LLC | $57.50 |
| Courtyard by Marriott Atlanta Buckhead | Partners Capital | $24.30 |
| The Westin Great Southern Hotel in Columbus, Ohio | Whitestone Companies | $8.90 |
| Roti Restaurants Inc. | BroadPeak Capital | $3.50 |
| Kelly's Roast Beef, Inc. | AAM 15 Management, LLC | n/a |
Source S&P Capital IQ as of 4/21/2025 and PCE Proprietary Data
Key trends shaping Consumer and Retail M&A:
Opportunities: Physical retail stores are undergoing a transformation to offer immersive experiences that cannot be replicated online. By investing in in-store services and experiences, retailers can boost customer acquisition, brand identity, and loyalty.5
Risks: Despite some stabilization, inflation remains a concern, with the Federal Reserve projecting core prices to grow by 2.8% in 2025. This could impact consumer spending and, consequently, M&A valuations and activity.6
Predicted Activity: The retail sector continues to face challenges, leading to a rise in distressed M&A as financially stable companies look to acquire brands, intellectual property, and assets from struggling businesses.4
Joe Anto |
Eric Zaleski |
Kyle Wishing |
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Data Assumptions This report represents transaction activity as mergers & acquisitions, consolidations, restructurings and spin-offs. Targets are defined as U.S. Based companies with either foreign or U.S. based buyers. Transaction information provided is based on closed dates only. Glossary EBIT - Earnings Before Interest and Taxes Sources:
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