2022 Year-end update

After a very strong 2021, last year was characterized by uncertainty and volatility. The packaging sector experienced moderate transaction volumes, with Mesirow completing six total transactions, following 18 in 2021. The key issues affecting the sector were the war in Ukraine, continued supply chain issues and labor availability, high inflation across the board, increasing interest rates, and expectations of a recession. The resulting uncertainty caused declines in the stock market, reduced M&A activity, and lowered public and private market valuations.

In general, the packaging industry outperformed the overall market, with share price and M&A volume declines that were more moderate. For 2023 (at least for the first half), we expect trends similar to those the industry experienced in 2022: modest outperformance with reduced M&A activity, and lower valuations driven mostly by the overall macro environment and the likelihood of a recession.

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Mesirow refers to Mesirow Financial Holdings, Inc. and its divisions, subsidiaries and affiliates. The Mesirow name and logo are registered service marks of Mesirow Financial Holdings, Inc., © 2023, Mesirow Financial Holdings, Inc. All rights reserved. Mesirow does not provide legal or tax advice. Securities offered by Mesirow Financial, Inc. member FINRA, SIPC. Some information contained herein has been obtained from sources believed to be reliable but is not necessarily complete and its accuracy cannot be guaranteed. Any opinions expressed are subject to change without notice. It should not be assumed that any historical market performance information discussed herein will equal such future performance. This report is for information purposes only and should not be considered a solicitation to buy or sell any security.