Uk Manufacturing M & A Activity Encouragingly Rose Again In 2022 Despite Challenging Times

Monday 3rd April 2023

Business advisory firm BDO has reported that 793 transactions involving UK manufacturers were achieved during 2022 compared with 779 in the previous year and up from 595 in 2020. For specific details relating to this result please read the news bulletin below issued today by Insider News Media.

Roger Mundy, Managing Director, Beardsley Theobalds, 3rd April 2023



UK manufacturing M&A activity has been "surprisingly resilient", according to a corporate finance director at business advisory firm BDO, despite a number of significant headwinds and a volatile macro-economic landscape.

BDO found that during 2022 there were 793 transactions involving a UK manufacturer, compared to 779 in 2021, and up from 595 in 2020.

The engineering services sector saw the highest proportion of deals, which was unchanged from 2021, but there was a substantial increase in manufactured materials – which saw its share of deal activity rise from 9 per cent to 13 per cent.

However, the number of transactions within food and drink declined from 13 per cent to 10 per cent.

Private equity maintained strong interest in the market, with buy-outs accounting for one in five deals.

John Gethen, corporate finance director, M&A at BDO LLP, said: "The UK Manufacturing M&A market has been surprisingly resilient despite considerable headwinds. Investors, corporates and entrepreneurs are still active, making the most of strategic M&A opportunities to safeguard the future and position for growth.

"Major themes facing the market include cost pressures, supply chain resilience, the drive to Net Zero, innovation, and sustainability, alongside a wide range of political and economic macro factors.

"There is high scrutiny by investors across the board, but we see plenty of opportunities in the M&A mid-market, attracting high levels of interest, investment and value, particularly where there is a technology or sustainability play adding value."He added: "M&A strategies aligned with the major market themes of the moment can be a key driver to help businesses position for the future, access funding, attain greater resilience and competitive advantage."