Sector Spotlight: Manufacturing

A closer look at the deal activity in the manufacturing sector

by Fardeen Nariman

The manufacturing sector in the UK is one of the largest and is a significant contributor to the UK economy.

It has long remained the backbone of the UK economy and according to a recent study, accounted for approximately 23% of the UK GDP and is responsible for creating over seven million jobs. In spite of political factors such as Brexit, the manufacturing sector has experienced modest but sustained growth. This has, in part, been due to many firms looking at M&A as a way to revolutionise their products using technology, recruit new talent and enter new markets.


Despite increasing concerns around the effect of both tighter regulation and political events on deal making, high levels of activity seen in the manufacturing M&A market to date looks set to continue. We are increasingly seeing a number of firms using transactions as a way to transform their businesses and we don’t expect there to be any let up soon, as deal flow is being supported by market resilience, pricing and valuation drivers as well as levels of available capital.

Transactions enable manufacturing businesses to grow sustainably in unfavourable conditions and with technological drivers as well as the convergence of many industries, this growth doesn’t show signs of slowing down anytime soon.

So, what does this mean for manufacturing?

Simply put, all of this means that there is still significant appetite for deal-doing in the manufacturing market, especially specialist manufacturing. Technology is driving manufacturers to innovate and become more efficient by developing their products. In addition, more manufacturers are increasingly looking at technology to digitalise their supply chains and streamline their internal processes.

In focusing on this as well as acquisitions to secure new talent, manufacturers will strengthen their businesses and continue to demand strong premiums for transactions.

Some of our recent successes

Having successfully completed a variety of deals in this sector, the corporate finance team at Quantuma are in an ideal position to help you understand the market and achieve your ambitions. We can work with you to identify acquisition targets, support you in raising funds, or help you if you are looking to exit and maximise your returns.

If you or a client are an ambitious, entrepreneurial business looking to explore growth opportunities in this sector we would be delighted to share our expertise and experiences with you.