Insights

Manufacturing and Industrials M&A Predictions

Optimism Building

In spring 2014, M&A experts in the manufacturing and industrials sector gave us their views on the economic environment. They shared their views on deal drivers, valuations and keys to successful deals. The companies we surveyed have a combined market cap of nearly £300bn.

The survey takes place against the back drop on an improving economic picture in the UK, which has driven an increase in positive sentiment towards M&A.

M&A outlook – a good deal better

This is our third edition of Manufacturing and Industrials: M&A Predictions. The survey took place against the backdrop of an improving UK economy, which made our respondents feel more positive about M&As. As a result, we expect to see a steady increase in deal activity in the coming months.

Confidence returns

In this year’s study, we found that:

  • 73 per cent of respondents expect M&As to increase in the next 12 months
  • 39 per cent believe they’ll enter a new joint venture soon
  • The majority of respondents describe themselves as acquisitive
  • Focus on existing portfolios - including possible divestments - is increasing
  • The return of private equity to the industry, identified as a primary source of target businesses, is significant
  • 44 per cent of respondents believe private equity will be a key driver of M&A activity in the next 12 months
  • Respondents were overwhelmingly positive about their experience of joint ventures
  • 63 per cent are optimistic for the manufacturing and industrial sector’s prospects in the next 12 months

Download Manufacturing and Industrials M&A Predictions – Optimism Building.

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