Mergers and acquisitions activity points to UK manufacturing resilience

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Mergers and acquisitions (M&A) activity in 2022 involving UK based manufacturers was at its highest level since 2016, analysis has found.

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Law firm Irwin Mitchell has examined Experian’s Market IQ database and found that 1,344 UK manufacturing businesses were the target of M&A activity in 2022 compared to 1,285 in 2021 and 1,231 in 2020.

Deal volumes in 2022 were at the second highest level in the last 10 years with activity levels in 2022 beaten by 2016 when 1,537 deals were completed.

In 2022, 57 per cent of transactions were acquisitions whilst management buyouts (MBOs) accounted for four per cent of deals. One per cent of deals were restructuring transactions compared to nine per cent in the previous year.

Findings show that in 2022, 30 per cent of deals with a UK-based target business involved an overseas bidder. Eight per cent of these bidders were based in the US with Sweden accounting for 3.5 per cent of deals. Germany and France both accounted for 2.3 per cent of activity.

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M&A activity UK