OVERVIEW OF THE MARKET OF BRAND ACQUISITION
Brand acquisitions in Europe have played a pivotal role in shaping the business landscape, enabling companies to expand their market presence, diversify portfolios, and achieve strategic growth. As the European market continues to evolve, brand acquisitions are expected to remain a critical component of corporate growth strategies.
MARKET VOLUME AND GROWTH OF BRAND ACQUISITION
Market Size
In 2023, the total value of M&A deals (Mergers and Acquisitions) in Europe amounted to approximately $1.32 trillion, equivalent to about €1.22 trillion. This period saw over 23,500 deals, marking a significant level of activity in the European M&A landscape.
Market Trends
The first half of 2024 saw a 9% increase in deal values compared to the previous year. The European brand acquisition market is on an upward trajectory, with expectations of increased transaction volumes and deal values in the near future, positioning Europe as a dynamic hub for M&A activities.
KEY TRENDS AND DRIVERS OF BRAND ACQUISITION
Portfolio Acquisition
Companies are increasingly engaging in acquisitions to refine and optimize their portfolios, focusing on core competencies and divesting non-core assets. This strategy enables firms to enhance operational efficiency and concentrate resources on areas with high growth potential.
Technological Advancement
The pursuit of digital capabilities is prompting companies to acquire brands that offer technological innovations. Acquiring technologically advanced brands allows companies enhancing competitiveness in a digital-centric market.
Scale Expansion
Market consolidation through acquisitions enables companies to achieve economies of scale, reduce competition and expand customer base and operational footprint efficiently
ESG Considerations
There is a growing emphasis on ESG (Enviromental, Social, and Governance) factors, with companies acquiring brands that align with sustainable and ethical practices. Embracing ESG principles enhances corporate reputation and meets regulatory demands for responsible business operations.