Building Products & Services sector deal activity continues to surpass expectations. Headwinds have slowed M&A growth, as predicted last year, but the sector outperformed the wider market, with transaction volumes maintained in 2022.

Featuring valuable input from industry leaders, the Construction Products Association and Eversheds Sutherland, our latest insights publication looks at the key themes that are shaping the Building Products & Services sector and what they mean for M&A globally and in the UK.

Key themes facing the sector: sustainability is front and centre

The unstoppable progress towards a more sustainable economy is driving new levels of innovation in areas ranging from modular construction to recycled materials to smart technologies.

There is much for businesses to do. The built environment comprises 40% of the global carbon footprint – given the requirement to achieve a global reduction in emissions of 50% by 2030 to avoid tipping points, the sector has just seven years left to avert the most significant potential impacts of climate change.

The drive to Net Zero requires a focus on materials, technology, supply chain, processes, operations and skills, with a multi-pronged approach essential for decarbonising all sectors of the market. Sustainability reporting will formalise target-setting and provide a framework for progress.

While inflation and supply chain issues thankfully seem to be fading, the industry still faces a significant long-term challenge in attracting talent. And sector leaders cannot afford to miss ever-evolving regulations, such as the Building Safety Act in the UK and the new R&D tax credit regime.

 

What does this mean for M&A globally and in the UK?

From our analysis of over 7,500 sector transactions completed in the last ten years, we explore key trends in the M&A market and examine the outlook for M&A.

Market trends are creating a backdrop for varied corporate finance activity, from seed investment for innovative start-ups, to market consolidation plays and corporate carve-outs. Private equity remains a strong investor in the industry, and we see a growing role for corporate venture funds too.

Special features in this edition include advice on selling a business in the current market environment, including M&A funding considerations, and specific advice on carve-out transactions. A further article provides a detailed look at M&A dynamics and outlook in the US market. We also provide extensive views on market dynamics and valuations by sub-sector in the UK.
 

 

Corporate transactions remain as complex as ever, so it’s important to seek sector-focused expert advice.  

Our global Building Products & Services M&A team is one of the most active advisory houses in the sector: over the last three years our team has completed over 600 deals in the sector. We work closely with leading midmarket privately owned businesses, corporates and private equity firms that, like us, believe strongly in the opportunities available in the sector.

We understand company strategy, market and commercial drivers, and have advised businesses at all stages of the investment lifecycle.

If you’re thinking of embarking on M&A or would like to discuss any of the issues arising from our publication, please do get in touch.

 

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