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Business Valuation, Selling Your Business, Flexible Packaging

Flexible Packaging Newsletter - Q3 2019

TKO Miller Market Analysis 

  • Flexible packaging’s ability to replace other packaging formats has resulted in growth in the U.S. Flexible Packaging segment, increasing from 17 percent of the U.S. packaging industry in 2000 to 19 percent in 2018. Converter expectations for sales revenue are projected to rise about 3 percent to 5 percent per year and volume to increase about 5 percent to 6 percent per year. [Flexible Packaging Association – 2019 State of the Industry Report]
  • TKO Miller saw a 7 percent decline in its proprietary flexible packaging valuation index (see below) from 2 to Q3. Part of this is attributable to the decline in both Berry Global Group and Mondi Plc’s TEV/EBITDA multiples (12 percent and 10 percent, respectively). Berry has suffered poor performance in its Engineered Materials and Health & Hygiene segments while Mondi has been hit by softening demand and an unfavorable pricing environment. The index’s performance contrasts with the S&P 500 index (see below), which has seen a 3 percent increase from Q2 to Q3.
  • The average flexible packaging converter is a small to medium-size company with annual sales totaling $70 million [Flexible Packaging Association]. This fragmentation sets the stage for heavy M&A activity in the future, with many large strategic acquirers pursuing national roll-up strategies.
  • TKO Miller continues to see larger players expressing a strong appetite for acquisitions, but demand continues to outweigh the supply of available businesses for sale.

Recent Flexible Packaging Transactions

Joe Froehlich
By Joe Froehlich
on Oct 20, 2019 9:05:00 AM
   
Flexible Packaging Newsletter - Q3 2019

TKO Miller Market Analysis 

  • Flexible packaging’s ability to replace other packaging formats has resulted in growth in the...
Joe Froehlich
By Joe Froehlich
on Oct 20, 2019 9:05:00 AM
What Happens to the Cash When I Sell My Business

If you are in the middle of a sale transaction, your M&A advisor or investment banker has probably told you not to do...

Joe Froehlich
By Joe Froehlich
on Sep 24, 2019 7:05:00 AM
Why An Offer to Buy Your Business Isn't Always the $$$ You Get - How to Think About Net Proceeds

You just got an offer to buy your business for $20 million!  That's wonderful.  Don't go buy a $20 million yacht until you...

Joe Froehlich
By Joe Froehlich
on Aug 8, 2019 7:05:00 AM
Flexible Packaging Newsletter - Q2 2019

TKO Miller Market Analysis 

  • Valuations within the flexible packaging market continue to climb as strategic and financial...
Joe Froehlich
By Joe Froehlich
on Jul 23, 2019 7:05:00 AM
Flexible Packaging Newsletter - Q1 2019

TKO Miller Market Analysis 

  • The Flexible Packaging Industry continued its strong growth trajectory in 2018 with an overall...
Joe Froehlich
By Joe Froehlich
on Feb 19, 2019 8:16:39 AM
TKO Miller Advises HFM Packaging, Ltd. on its Sale to PPC Flexible Packaging, LLC, a Portfolio Company of Morgan Stanley Capital Partners

MILWAUKEE, WI (February 6, 2019) – TKO Miller is pleased to announce the successful sale of HFM Packaging, Ltd. to PPC...

Joe Froehlich
By Joe Froehlich
on Feb 6, 2019 2:45:00 PM
TKO Miller Advises Dynamis on its Sale to Applied Systems, Inc.

MILWAUKEE, WI (October 23, 2018) – TKO Miller is pleased to announce the successful acquisition of Dynamis Software...

Joe Froehlich
By Joe Froehlich
on Oct 23, 2018 11:30:45 AM
Is Your Client Ready to Sell Their Business? These Are the Signs

As an advisor to family business owners, we all need to be part-time financial experts, legal experts, tax specialists, and...

Joe Froehlich
By Joe Froehlich
on Sep 25, 2018 7:01:00 AM
TKO Miller Advises Phoenix Products Company, Inc. on its Sale to JMC Capital Partners

TKO Miller, LLC, a leading middle-market investment bank, today announced the acquisition of Phoenix Products Company,...

Joe Froehlich
By Joe Froehlich
on Sep 11, 2018 6:51:00 AM

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