M&A activity drops in 2023 but predicted to rebound in 2024
Mergers and acquisitions activity among manufacturers fell by over 10 per cent in 2023 but is expected to recover in 2024 as companies look at M&A to accelerate growth plans.
BDO’s Manufacturing Deals Review found that 706 UK manufacturing deals were completed in 2023, down 11 per cent from the 793 deals reported in 2022.
According to BDO, the slower activity was mostly confined to the first half of the year and in the last six months over 400 deals were completed, with the momentum expected to continue into the next 12 months.
Businesses in the engineering services subsector made up 28 per cent of all completed transactions. This was followed by businesses in the food & drink sector (14 per cent), which saw deal volumes increase from 79 in 2022 to 102 in 2023.
According to additional research by BDO and Make UK, 26.8 per cent of UK manufacturers are looking to make acquisitions in the next two years as they seek to scale up operations and access new products and markets. This figure rises to 38 per cent over a three-to-five-year period.
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