2017 in Review & 2018 in Preview
The 2017 M&A climate was robust, at levels not seen since before the 2008 crash. This meant a terrific year in furniture acquisitions and for Stump & Company. Our boutique M&A firm closed 7 transactions across the Residential, Hospitality, & Contract sectors of the industry:
In addition to a record setting bull stock market, generous bank lending, and an upbeat economic environment, the 2017 M&A activity in furniture was the result of a confluence of strategic buyers looking for growth, international players trying to move into US assets, and private equity firms looking to create or add to platform investments.
We are also proud to highlight the work of our affiliate company, The Stump Corporation, who had another outstanding year in the industrial real estate brokerage business, with over 41 transactions (that’s 3.4 deals per month) totaling 4.2 million square feet. Notable furnishings clients include Valdese Weavers, HSM, Century Furniture and Universal Forest Products.
If you need industrial real estate assistance, call Randy and John Stump: they are the best.
As we look ahead to 2018, we see reason for further optimism. The US economic climate remains strong as does the global environment generally. Private Equity firms are well capitalized and have platform companies that need add-on / bolt-on investments to spur growth, while strategic buyers are looking across industry sectors to find growth. This strength in furniture M&A parallels the general M&A trends globally.
We will monitor the influence of the new tax code. Based on what we know to date, we anticipate seeing a rise in consumer confidence, with corporations having more cash on hand to fund acquisitions and make CAPEX investments. Private equity groups remain flush with cash and we expect to see continued inflow of capital into our industry.
We see great cause for optimism in 2018, and look forward to seeing you at the upcoming furniture markets