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Happy Friday and welcome to another edition of Axial Radar!
The weekend can’t come soon enough for big box retailers. Walmart and Target reported earnings earlier this week. What followed was the worst single-day decline in each respective company’s share prices since the infamous Black Monday market crash of 1987. Amazon shares followed suit, dropping 8%, as investors attempted to digest the news and its implications on the future of retail.
Despite the gore in the public markets, there is a flicker of light coming out of the Fulfillment By Amazon (FBA) corner of the retail world. For those who are unfamiliar, Amazon offers small businesses the ability to use their logistical networks (packaging, shipping, customer service, etc) for their own products. There’s a small but growing group of investors that have begun aggregating these third party sellers operating through FBA. As of March 2022, investors had raised almost $15B for the acquisition and aggregation of third party FBA brands. Scroll down to this week’s featured Industry Trends article to read more about the robust M&A activity in the FBA space, and why it’s poised to continue throughout the year.
Our featured buy-side members this week include an information services focused investment firm, a CT-based PE firm, and a hands on healthcare investment firm. On the sell-side we’ll introduce you to an M&A consulting firm and one of Canada’s leading middle market investment banks.
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