Looking back on 2018, Apparel M&A had a record year and
finished on a high note, with transaction value totaling $3.4
billion in the fourth quarter.1 Valuations have remained
strong for Apparel and Retail, with average EV/EBITDA multiples of
10.1x and 7.5x, respectively, even amidst a public market pull
back. The market has shown promise entering 2019, but caution is
the watchword as significant economic and political headwinds may
suggest that more change is on the horizon.
We witnessed a fair amount of movement in key indicators by the
end of the year. Throughout 2018, retail withstood heavy store
closures, but in December, mall vacancies finally receded from a
seven-year high.3 Volatility in interest rates, as well
as economic and trade issues caused public markets to peel back
towards year end. Nevertheless, holiday sales enjoyed a robust
season that surpassed last year's sales by more than
five%.2 This was further underscored by impressive
growth on Black Friday
