Our UK industrial team Tom McCarthy, Peter Waplington and Liam Hadfield recently took a look at the building products sector. They note a dip in M&A deal volumes since last year as a result of ongoing inflation and geopolitical uncertainties, in contrast to the the robust post-lockdown M&A activity of 2021-2022.
The lingering effects of stronger valuation multiples from 2021 and 2022 created gaps in expectations between buyers and sellers, with an increasing proportion of deals bridged by earn outs.
Despite the challenges, international interest in the UK market remains strong, with 31% of H1 2023 buyers based overseas, sustained by favourable currency rates and the pursuit of high-quality UK assets.
For a detailed analysis, read the full report from our UK industrial team here.