TriVista’s Food & Beverage expert, Jennifer Frankenberg discusses the opportunities and risks associated with the spike in M&A activity in the pet food and treat industry in Middle Market Growth Magazine.
“Over the last 10 years, we have seen Private Equity investment activity in the Pet Food and Treats sector increase substantially, particularly in the middle market. According to industry specialists, consumable pet products are commanding double-digit EBITDA multiples and 20 to 30 percent more than hard goods such as pet toys and bedding. However, as Private Equity investors have increased their activity, the risk profile of many of these investments may also increase, as investments in the pet food and treats sector comes with unique compliance and regulatory requirements not encountered in traditional manufacturing and distribution environments, particularly those associated with Food Safety.”
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