CONSUMER
FINANCIAL SERVICES
HEALTHCARE
INDUSTRIALS
PROFESSIONAL AND BUSINESS SERVICES
TECHNOLOGY AND MEDIA

CONSUMER

FINANCIAL SERVICES

HEALTHCARE

INDUSTRIALS

PROFESSIONAL AND BUSINESS SERVICES

TECHNOLOGY AND MEDIA

INDUSTRY SPOTLIGHT

Industrials

Deals across the industry

As predicted in 2023, deal activity in 2024 remained consistent but is expected to increase in 2025 following the stabilisation of the cost and inflationary pressures experienced over the past 18-24 months. Strategic investments in innovative technologies and analytics, along with portfolio reviews and divestitures, have driven M&A activity in the second half of 2024 and will continue into 2025. With the autumn budget significantly impacting cost bases and profitability, businesses will seek efficiencies and savings through technology. In 2025, ongoing capital constraints and higher financing costs will lead companies to prioritise divesting non-core assets to free up capital for investment opportunities and smaller deals.

Industrials outlook for 2025

The outlook shows growth potential and financial challenges. Rising costs from employers’ National Insurance contributions (NICs), Capital Gains Tax (CGT), and wage hikes will impact hiring, especially for small and medium size-enterprises (SMEs). However, government support through an enhanced Industrial Strategy, Made Smarter funding, and research and development (R&D) investments in high-growth sectors like automotive, aerospace, and life sciences will foster innovation. The full expensing extension, freeze on corporation tax, and stable R&D tax regime create a predictable environment, encouraging long-term planning. This is reflected in increased confidence in strategic investments from our Manufacturing Investment Monitor survey with Make UK. Consequently, we anticipate a rise in sector transactions in 2025 as businesses pursue strategic investments, consolidations and partnerships to mitigate cost pressures and capitalise on growth opportunities. We expect to see:

  • Companies continuing to prioritise the divestment of non-core assets to free up capital for investment opportunities and smaller deals.
  • The trend towards digital transformation and prioritising data analytics significantly influencing activity as companies enhance efficiency, reduce costs and stay competitive.
  • Investments in renewable energy and sustainable technologies thriving as businesses prioritise sustainability and ESG goals.
  • Increased M&A activity driven by the push towards automation in manufacturing and industrial processes.

DEAL HIGHLIGHT

Route One Infrastructure

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DEAL HIGHLIGHT

New Era Energy

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Notable industrials deals our team have been involved in include:

Celnor Group Limited


Acquired 13 transactions including Veriflo Limited and Vision Survey Limited

Service Financial and tax due diligence

Sector Energy and Natural Resources

Sub sector Other energy

Luceco plc


Acquired CMD Limited

Service Financial and tax due diligence

Sector Manufacturing

Sub sector Electronics

Riva Foods


Acquirer A food investment group

Service M&A

Sector Manufacturing

Sub sector Food and drink

Waterscan


Acquirer LDC

Service M&A, tax due diligence and finance function support

Sector Energy and Natural Resources

Sub sector Other energy

Contact our industry experts for further information

John Bryant

M&A Partner

+44 (0)7977 484884

Contact John

Philip Parkes

Transaction Services Partner

+44 (0)7800 617280

Contact Philip
CONSUMER
FINANCIAL SERVICES
HEALTHCARE
INDUSTRIALS
PROFESSIONAL AND BUSINESS SERVICES
TECHNOLOGY AND MEDIA

Deal services | Review 2024

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