Oghma Partners believes that the key issues that impacted M&A in 2022 dragged over into the start of 2023 with inflationary cost pressures, the cost of living crisis and the increased cost of debt suppressing the higher value deals in the first half of the year. However, deal volume increased compared to 2022, 116 deals for 2023 (an increase of 57%). The firm believes that this increase in activity in part reflected pent-up seller activity and, in addition, the sad bonus of a large numbers of businesses acquired out of administration (10.0%). (Contact Oghma Partners to inquire about receiving a copy of the report.)
UK plant-based companies have particularly struggled in 2023, with three businesses being acquired out of administration. In June, Vegan Food Group (formerly known as VFC) acquired Meatless Farm, in July Vbites acquired Plant and Bean, and in December it was announced Vbites had gone into administration. It hasn’t just been the smaller players struggling, in August Beyond Meat sales had fallen by almost a third over the previous three months, Heck announced in May it was slashing its range of meat-free products from ten to two, Pret a Manger has closed half of its vegetarian and vegan-only outlets, Nestlé axed its Garden Gourmet plant-based vegan brand in the UK and LoveSeitan collapsed in August. The meat-free industry has faced a triple whammy—a cost of living crisis turning consumers away from higher-cost meat-free products, cost inflation and much reduced investor appetite to provide follow-on funding.