How a Bifurcated Market in the Consumer Sector Is Impacting Dealmaking

In the first half of 2026, two distinct markets have emerged in consumer dealmaking: a narrow band of high-growth, high-margin brands drawing double-digit EBITDA multiples — and all the other companies, which are relying on earnouts, rollover equity, and seller notes to bridge price expectations.

Kevin Slaughter was quoted in a recent ION Analytics article explaining what this looks like on the ground:

“There is no single consumer multiple right now,” Kevin said. “The market is separating high-quality assets from everything else.”

Because headline volume has been carried by a handful of very large transactions, the broader market can look stronger than it feels in the middle market, Kevin explained. In the middle market sector, buyers are taking a more disciplined approach rooted in deeper diligence and a longer process for addressing financing.

“I do not expect a return to the 2021 market,” Kevin said. “Good companies will get sold, but price, structure, and certainty of closing will all matter.”

Read the full article here.

Questions about how the current consumer market may impact an upcoming transaction? Reach out to Kevin Slaughter or another member of LP’s Corporate Group.