Food & Beverage 2Q 2024 Report

By Mike McCrawPublished On: August 20, 2024

2Q 2024 M&A Report: The second quarter brought a slight uptick in Food & Beverage deal volume, offering a positive signal as M&A markets recover from the declines observed in 2023. While the persistent fog of market uncertainty among buyers – combined with higher interest rates and the threat of a recession – has resulted in flat deal multiples over the past several quarters, Q2 offered a bright spot. In the middle market, average purchase price multiples on completed deals in the second quarter reached 7.4x Trailing Twelve Month (TTM) EBITDA, an increase of a half turn of EBITDA from the first quarter average. Deals valued at less than $100 million all saw increases in average valuation, as did deals valued between $250 million and $500 million.

DOWNLOAD THIS REPORT

Mike McCraw, Managing Director and Food & Beverage Team Leader at FOCUS, is an experienced entrepreneur and investment banker and has over 30 years’ experience serving clients with mergers & acquisitions, advisory services, and business consulting. Prior to joining FOCUS, Mr. McCraw led the Consumer Team at Founders Investment Banking. While there, he helped launch a well-attended annual educational and networking event called the Multi-Unit Summit, bringing together top brand and industry leaders in a relaxed, high-quality environment. Mr. McCraw has also served as CFO for several multi-unit companies. In addition, Mr. McCraw started and led the Outsourced Services Practice Group at Warren Averett, one of the largest CPA firms in the Southeast. Before Warren Averett, Mr. McCraw co-founded and served as managing principal of the Birmingham office of a regional CPA and consulting firm. He also started and helped lead a lower middle market private capital group focused on adding value alongside successful entrepreneurs. Mr. McCraw has served as CFO/COO of a regional construction sub-contractor, CFO of a manufacturing company and Controller at two leading hospitals. Mr. McCraw is a Certified Public Accountant (CPA) and has a Master’s of Business Administration (MBA) from the University of Alabama at Birmingham. Mr. McCraw received his undergraduate degree in Accounting from Troy University, where he was quarterback on a National Championship team.