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Thu May 06 2021

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M&A activity reaches new high

23 May 17 Merger and acquisition activity in the building products and services sector reached record levels in 2016, according to an analysis by accountancy firm BDO.

The price being paid for companies is also at a new high, something that BDO attributes to private equity enthusiasm for the sector.

In 2013, the average multiple was 5.0x Ebitda; today it has reached 6.9x.

In 2016 some 22% of UK transactions received private equity investment. Despite Brexit uncertainty, the fall in sterling will continue to buoy the flow of cross-border transactions, and could well encourage a surge of opportunistic buys, BDO speculates

BDO’s report says there is string international interest in acquiring UK plant hire companies and consolidation in the builders’ merchant materials sectors are expected to continue.

Other sectors with strong M&A activity are HVAC (heating, ventilation and air conditioning) and security & access, both of which are seeing technology driving market growth.

To read the full report, click here.

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