Consumer & Retail |

Quarterly M&A Update | Q2 2025

Latest market trends, valuation levels and deals

Political uncertainty and margin resilience define Q2 dynamics in consumer & retail

In Q2 2025, the consumer & retail sector was shaped by geopolitical tensions and heightened political uncertainty following the German federal elections. While inflation eased slightly in parts of Europe, consumer sentiment — particularly in the US — remained fragile.

Germany recorded 91 transactions, with investor interest increasingly focused on margin-resilient sub-sectors such as automotive services and fitness. Large-scale consolidation activities slowed as regulatory concerns prompted a more cautious approach. The average valuation multiple stood at 12.6x EV/EBITDA.

Essential categories, including grocery retail and personal care, demonstrated continued stability. In contrast, cyclical segments such as apparel and home goods faced significant pressure. Going forward, market momentum will largely depend on the timely implementation of fiscal policy in Germany — delays may further erode already subdued consumer confidence.

We are delighted to share the latest issue of our Consumer & Retail Quarterly M&A Update for the second quarter of 2025. In this report, we provide an update on latest industry trends plus insights into valuation levels and recent transactions.

We hope you enjoy the read and look forward to your feedback.