Succeeding in today's M&A environment

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    23-Aug-2014

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Merger and Acquisition (M&A) activity in the Retail & Consumer (R&C) Market is rising, but the environment is challenging, posing risks for buyers an sellers. Strong corporate balance sheets, continued access to lower cost capital and lower revenue growth are driving increased M&A demand. But, the supply of deals is low, creating a competitive environment, which, coupled with the rapidly changing R&C business environment, presents risks which must be managed on Day One, within the first 100 days or over the longer term following an M&A transaction. Presented at the Creating value and trust: Navigating risk and meeting customer expectations, PwC's Internal Audit Ethics and Compliance Retail and Consumer Roundtable for internal audit and ethics and compliance executives, April 2014. For more information, visit: http://pwc.to/1rbVnlY

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  • www.pwc.com/Transaction Services Succeeding in todays M&A environment April 2014 Strictly private and confidential Leanne Sardiga 312-298-3183 leanne.m.sardiga@us.pwc.com Bob Forbes 312-298-6506 robert.j.forbes@us.pwc.com
  • PwC Topics for discussion M&A trends in todays retail & consumer market Acquisition considerations Focus areas for compliance and Internal Audit Divestitures Market trends for buyers & sellers April 2014 2
  • PwC M&A trends in today's retail & consumer market April 2014 3
  • PwC Retail and consumer deals market US April 2014 4 391 290 316 327 350 272 1,023 685 823 851 885 847 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 0 200 400 600 800 1,000 1,200 1,400 1,600 2008 2009 2010 2011 2012 2013 Totalvalue($inMillions) Dealsbyvolume Non-disclosed Disclosed Value In USD million, except number of deals 2011 2012 2013 # of deals Total deal value % value mix # of deals Total deal value % value mix # of deals Total deal value % value mix $50 to $100M 32 2,260 5% 37 2,669 3% 29 2,120 2% $100M to $250M 36 5,789 12% 35 5,331 6% 33 5,465 5% $250M to $500M 21 7,211 15% 20 6,714 8% 23 8,097 7% $500M to $1B 11 7,773 16% 14 9,908 12% 22 15,426 14% > $1B 13 21,610 46% 23 56,100 67% 19 75,532 70% Subtotal >$50M 113 44,644 95% 129 80,722 96% 126 106,640 98%