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UK Manufacturing M&A Activity Remains Resilient, with Deals on the Rise

April 12, 2023

The UK manufacturing industry remained resilient in 2022, with 2023 also off to a promising start.

A challenging economic environment has cast uncertainty on the sector, but in a report by Irwin Mitchell that examined deal information from Experian’s Market IQ database, it revealed that 1,344 UK manufacturing businesses were the target of M&A activity in 2022, in comparison to 1,285 in 2021 and 1,231 in 2020, its highest level since 2016. 

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The UK manufacturing sector has also seen a continued interest from overseas investors, with 30% of deals coming from abroad. The US was the largest investor, accounting for 8% of deals, followed by Sweden, Germany and France.Factors that have contributed to this uptick in deals include investors looking at strategic opportunities as a means of securing supply chains; expanding product offerings; gaining access to new technology and service capabilities; recruiting new talent; and strengthening competitive positions, safeguarding their future and position for growth.

 

Q1 2023 has also had a positive start, with many manufacturers reporting that output volumes have increased.

This growth has been prevalent in the electronics, mechanical equipment and metal products subsectors.

Commenting on these trends, Emma Callow, corporate partner at Irwin Mitchell, said: “This latest analysis may look surprising, bearing in mind the challenges faced by the economy last year. Although activity dipped in the last quarter of 2022, these figures certainly reflect how resilient the manufacturing sector is.

“We have seen deal flow in the sector continue to be strong and early signs show that activity in 2023 may be even stronger than 2022.”

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ABOUT BENCHMARK INTERNATIONAL:

Benchmark International is a global M&A firm that provides business owners with creative, value-maximizing solutions for growing and exiting their businesses. Benchmark International has handled transactions across various industries from offices across the world. With decades of M&A experience, Benchmark International’s transaction teams have assisted business owners with achieving their objectives and ensuring the continued growth of their businesses. The firm has also been named the Investment Banking Firm of the Year by The M&A Advisor and the Global M&A Network, as well as the #1 Sell-side Privately Owned M&A Advisor in the World by PitchBook’s and LSEG's Global League Tables.

The content provided by Benchmark International, including articles, blog posts, videos, and other media, is for general informational purposes only and does not constitute legal, financial, investment, or business advice. While we strive for accuracy, the information may be based on third-party sources, market trends, and evolving industry data that are not independently verified or guaranteed to be current or complete. Any opinions expressed are those of the authors and do not necessarily reflect the views of Benchmark International. Market trends, forecasts, and forward-looking statements are inherently uncertain and subject to change. Nothing in our content should be relied upon as a substitute for personalized advice from qualified professionals. Benchmark International disclaims all liability for any loss or damage resulting from reliance on this content. Always consult with appropriate experts before making business decisions.

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