Stakeholders Across Commercial & Consumer Technology Sectors Display Optimism Despite a Lackluster 2023

2023 proved to be a challenging year for many companies operating in the commercial and consumer technology verticals we cover. For many businesses, 2023 was a year of operational normalization, balance sheet right-sizing, and strategic repositioning after the unprecedented volatility and disruptive conditions that surrounded the pandemic and subsequent supply chain fiasco. At the same time, market uncertainty, heightened costs of capital, and other headwinds depressed M&A volumes more broadly, though several strategic acquirors and a handful of investors remained acquisitive, particularly in high-performing verticals like professional A/V and live event technologies.
Private Equity continued to demonstrate its attraction to the pro A/V space as evidenced by a few prominent deals in 2023, including Providence Equity Partners’ acquisition of d&b Group, Court Square’s acquisition of Chauvet Lighting, and Francisco Partners’ backing of Muse Group to acquire Hal Leonard.

Despite recent trials and tribulations, a common theme emerged through our recent conversations with industry stakeholders at CES and NAMM: While 2023 was tough, there is much to look forward to in 2024. Although some recessionary concerns linger, the market has adopted a more optimistic outlook, particularly as inflation has seemingly been tamed and consumer sentiments improve across the market. Moreover, many companies now find themselves better positioned for long-term, profitable growth after implementing strategic changes over the last year to drive operational efficiencies. Paired with pent-up demand for innovative, high-quality assets and robust capital availability, these trends should drive a meaningful rebound in industry M&A in 2024.

If you are interested in learning more about what’s happening in consumer electronics, music technology, professional A/V, residential technology, or security technology, or about potential M&A or capital raising options for your business, please do not hesitate to reach out.
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