On the latest episode of Behind the Buyouts, Chris Petrossian, a managing director and co-head of consumer at Lincoln International LLC, discussed consumer M&A’s path to recovery in 2026 and beyond.

Consumer dealmaking has been choppy over the past few years due to inflation, elevated interest rates, tariffs and pressure on discretionary spending.

Transaction timelines have stretched to 12 to 14 months as buyers demand more diligence and advisors spend additional time preparing companies for market, Petrossian said. As a result, many sale processes have been delayed while sellers wait for improved macroeconomic conditions.

Still, pent-up supply from private equity portfolios and founder-owned businesses could drive a significant increase in deal activity beginning in 2027.

Food and beverage, consumer health, personal care and consumer services remain the most resilient subsectors, according to Petrossian. Investors are also paying close attention to companies with omnichannel strategies, private-label products and artificial intelligence-driven operational efficiencies in an evolving consumer landscape.

“There’s going to be, for lack of a better word, an avalanche of deals that we are expecting to come, hopefully in 2027, from both private equity and owner entrepreneurs,” Petrossian said.

Listen to the podcast with Chris Petrossian below:

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