Business acquisitions in the manufacturing and production industry
The manufacturing and production industry was disrupted by the pandemic and subsequent economic and political challenges, but M&A transactions involving UK manufacturers have returned to pre-COVID levels or above, with significant catch-up activity and an increase in interest from strategic buyers and private equity parties, including overseas buyers.
The most active subsector is engineering, with food and drink, building products, life sciences, and chemicals also attracting attention.
Trends and developments in the manufacturing and production industry
Deal activity remains strong despite challenges such as rising input prices, shortages of raw materials and components, and supply chain disruption.
Both exports and imports can be affected by international developments and national economic conditions, and M&A activity is increasingly influenced by the need to reduce vulnerability to supply chain problems, global conflict, and future pandemics by rethinking ‘just in time’ processes and prioritising resilience over efficiency. This includes identifying alternative sources of raw materials and nearshoring goods and services.
Entrepreneurs looking to grow and expand their operations are looking for collaborations within the supply chain, innovation, and sustainability, and investment in new technologies with the potential to make their companies future-proof.
Skills shortages and wage inflation are driving strong interest in industrial automation, including industrial packaging, where combining automation and sustainability measures can maximise benefits.
As investors help companies scale-up, businesses with the most promising innovations and the strongest growth potential will find no shortage of backers.
Technology and sustainability in the manufacturing and production industry
As the UK increases its Net Zero ambitions, there is increased interest in innovation that can accelerate the adoption of low-carbon technologies, systems, and business operations.
It is becoming problematic to use fossil fuels and resources, and entrepreneurs need to invest in sustainable choices such as reducing emissions in processes and the supply chain, re-engineering products, and scaling up innovations. The trend to align businesses and portfolios with ESG goals creates interest in manufacturers with existing knowledge and capabilities.
Technological developments, sustainable solutions, and knowledge-sharing create new jobs and makes companies in the manufacturing and production industry attractive to private equity partners.
To make your company future-proof, we recommend looking into the steps you can take right now to make your company ready to sell, or to shape your growth ambitions through a business acquisition.
Selling or buying a company in the manufacturing and production industry
There are plenty of good reasons to consider buying or selling a company in the manufacturing and production sector. Is your company active in a niche that might be interesting to a larger player in the market? Or do you want to expand your range of services by acquiring another company? Whatever your situation may be, we can support you in finding suitable potential companies.
Are you considering a partial or full sale of your company to secure income through a pre-exit? We can look for a buyer that meets your requirements.
Marktlink: your specialist in acquisitions in the manufacturing and production industry
Each year, more than a thousand entrepreneurs in this sector use the Marktlink Multiple to calculate their business value. We regularly guide the transaction process for companies in the manufacturing and industrial sector and have unrivalled market knowledge and a substantial portfolio of potential buyers and sellers.
Are you considering an acquisition in the manufacturing and production industry?
Are you looking for a partner or an investor, or do you want to join forces with another company? Marktlink can help you realise your ambitions. Always committed, independent and professional, we have a large national and international network, and detailed knowledge of local and global markets.
Our specialists will use their knowledge and experience proactively, to help you find the right successor or implement your growth strategy in the manufacturing and production sector.
