The BGL Consumer Insider: Global Supply Chains
and Channel Sentiment
CHICAGO,
May 6,
2024 /PRNewswire/ -- Investor sentiment related to
global supply chain risk and channel optimization has recently
shifted. Growing geopolitical tensions between the U.S. and
China and significant
underperformance by high profile eCommerce businesses have caused
investors to rethink how they evaluate and ascribe value to
investment opportunities, according to an industry report released
by the Consumer investment banking team from Brown Gibbons Lang
& Company (BGL).
The report reveals what key fundamental is
the best predictor of successful Consumer investment
activity.
Download and read the BGL Consumer Insider
– Global Supply Chains and Channel Sentiment:
https://bit.ly/bglConsumerInsider
The uncertainty surrounding the future of
U.S.-China economic relations,
fueled by potential conflict related to Taiwan and the rhetoric of U.S. presidential
candidates, has intensified investor concerns. In response,
consumer businesses should be actively pursuing a dual-sourcing
strategy or consider completely exiting their relationships with
Chinese suppliers.
Key highlights include:
- Why large U.S. retailers are requiring vendors to develop
product sourcing strategies outside of China
- How many investors view sole sourcing from China as a massive value detractor with some
firms refusing to invest in businesses that rely on China for products
- What consumer businesses should actively be working towards
amid supply chain challenges with China
- Which countries present meaningful alternatives to China
- How investor sentiment will continue to impact
overall M&A activity in the Consumer sector
- Why digital commerce continues to drive economic growth and
brand value
- What key fundamental is the best predictor of successful
investment activity
The Consumer sector has undergone significant
disruptive transformation in recent years, driven by the rise of
eCommerce and the accelerated adoption of digital platforms during
the pandemic. As brick-and-mortar businesses faced unprecedented
challenges due to lockdowns and COVID-19 fears, investors sought
refuge in eCommerce assets. However, the outcomes varied greatly,
with some investments proving successful while others fell short.
The key differentiator lies in the underlying business
fundamentals.
The return of growth in eCommerce sales will help
dispel any doubts about eCommerce as a viable channel for
businesses moving forward.
BGL's Branded Consumer Products investment
banking team has extensive expertise and a track record of
successfully assisting branded consumer companies achieve
outstanding results across a range of subsectors. Our Consumer
Group is a leader in eCommerce investment banking for the
middle market. Our team has the technical expertise, positioning
strategies, and growth-oriented projection models to ensure branded
and managed marketplace DTC & B2B eCommerce platforms are
optimally positioned to achieve outlier valuations.
About Brown Gibbons Lang &
Company
Brown Gibbons Lang & Company (BGL) is a leading
independent investment bank and financial advisory firm focused on
the global middle market. The firm advises private and public
corporations and private equity groups on mergers and
acquisitions, capital markets, financial
restructurings, business valuations and opinions,
and other strategic matters. BGL has investment banking
offices in Chicago, Cleveland, Los
Angeles, and New York, and
real estate offices in Chicago,
Cleveland, and San Antonio. The firm is also a founding
member of Global M&A Partners, enabling BGL to service clients
in more than 35 countries around the world. Securities transactions
are conducted through Brown, Gibbons, Lang & Company
Securities, LLC, an affiliate of Brown Gibbons Lang & Company
LLC and a registered broker-dealer and member of FINRA and
SIPC. For more information, please visit www.bglco.com.
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SOURCE Brown Gibbons Lang & Company