Financial And Strategic Buyers Go Label Shopping
Interest in brand acquisitions has been heating up as financial and strategic buyers look to tap into established revenue streams and loyal customers, while eliminating competitors and reviving undervalued brands. The hot areas for buyouts should be in consumer products, especially consumer packaged goods, and consumer healthcare products, said Bill Johnson, Eastern division president of The Brand Institute, a consulting firm.
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Nick Jachim, managing director KPMG Corporate Finance, said he has seen a pickup in activity for targets in apparel, bath and body care, industrial products and food retailers. He's currently working with three companies considering a sale. One sells private label food products. The other two sell consumer brand products, including fragrances and soaps.
"Brands in good times and bad will always stand the test of time," Jachim said. The value of brands can be realized by buying only the name from the company or buying the entire company with a quality name.