In a new report, advisory firm BDO has found that mergers and acquisitions (M&A) deals involving UK manufacturers jumped by almost a third in 2021. This is more surprising as dealmaking surpasses pre-pandemic levels.
BDO’s analysis reveals that 779 UK manufacturing deals completed in 2021, compared with 595 in 2020 and 686 in 2019.
Most manufacturing subsectors saw double-digit growth in activity levels, but the clear frontrunner was Engineering Services which saw deal volumes rise by 48% as businesses in the sector realised the opportunity to transact and gain injections of funding for growth.
Set against a backdrop of skills shortages and wage inflation, they saw particularly strong interest in Industrial Automation, and they expect the high demand for investment in this sector to continue to fuel M&A activity. With the drive to Net Zero coming into sharper focus, the sect is likely to see increased interest in innovation that can accelerate the commercialisation of low-carbon technologies, systems and business models. And given the global uncertainties and trade wars, the see M&A activity influenced by a desire to improve supply chain resilience.
Read more about the report here: