While cash flow and profits have stalled for many retailers and brands this year, due to COVID-19, a flurry of acquisitions has not yet materialized. Still, industry experts say it is a “sellers’ market.”
Andrew D. Postal, managing partner at MMG Advisors, an investment bank focused on middle-market retail and fashion companies, represents parties on both sides of the table with clients that have included Vince Camuto, John Varvatos, Hampton Industries, the Northwest Company, Milly, New Holland Apparel, Jazwares, Haskell Jewels, Planet Sox, Kids Headquarters and Waterbury Garment, among others.
Here, as part of a two-part series on buying and selling fashion apparel or retail brands, Postal shares his insights into market trends in mergers and acquisitions and what brands need to know when considering a sale.
WWD: Would you describe current conditions as a sellers’ market?
Andrew Postal: We believe this is more of a sellers’ market than people might believe. While liquidity and profitability have been constrained as a result of disruptions from COVID-19, the avalanche of sellers that many forecasted has not come to pass. Numerous potential buyers with financial capability are looking for opportunities, and the dearth of companies for sale is keeping valuations and demand higher than might be
Andrew D. Postal, managing partner at MMG Advisors, an investment bank focused on middle-market retail and fashion companies, represents parties on both sides of the table with clients that have included Vince Camuto, John Varvatos, Hampton Industries, the Northwest Company, Milly, New Holland Apparel, Jazwares, Haskell Jewels, Planet Sox, Kids Headquarters and Waterbury Garment, among others.
Here, as part of a two-part series on buying and selling fashion apparel or retail brands, Postal shares his insights into market trends in mergers and acquisitions and what brands need to know when considering a sale.
WWD: Would you describe current conditions as a sellers’ market?
Andrew Postal: We believe this is more of a sellers’ market than people might believe. While liquidity and profitability have been constrained as a result of disruptions from COVID-19, the avalanche of sellers that many forecasted has not come to pass. Numerous potential buyers with financial capability are looking for opportunities, and the dearth of companies for sale is keeping valuations and demand higher than might be
Follow WWD on Twitter or become a fan on Facebook.