Inform Magazine

THE STRENGTH OF MANUFACTURING IN THE M&A MARKET

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anufacturing has long played a key role within the UK economy, and it was one of the first to recover post-pandemic. It is therefore no surprise that a

research and development tax credits which generate further investment and contribution to both their own output and provides a boost to the UK economy. The latest annual government statistics, published in September 2022, stated that over one fifth of all R&D Tax credits were claimed

strong manufacturing sector plays a key role within a thriving M&A market. This resilience of the industry is demonstrated in the Manufacturing: Key Economic Indicators report carried out by the UK Government. The report found that by 2021, the sector contributed 9.7% of total UK economic output. In addition to such a significant contribution to the nations gross domestic output, the manufacturing sector also provides high levels of employment with 7.3% of those employed in the UK, working within the sector.

by companies operating within the manufacturing sphere, surpassed only by the information and communication sector. This figure presents an interesting offering an additional layer of value when considering companies within this industry as a potential target. Another key element of the appeal of manufacturing is the sector continually drives high levels of M&A interest. Refinitiv’s July 2022 Mid Market Review reporting that the manufacturing and opportunity to potential acquirers and investors,

...the manufacturing sector contributed almost 10% of total UK economic output...

Manufacturing does not only play a notable contribution to Gross Domestic Product (GDP), but it also offers a plethora of opportunities for innovation. The sector is truly diverse, and can encapsulate any company operating within the production industries. This in turn permits manufacturing companies to apply for

industrial sectors are commanding particularly high levels of investment and acquisition interest. This sentiment can be echoed in our own experiences at KBS Corporate, with the manufacturing sector alone accounting for nearly a quarter of all deals completed in 2022 alone.

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