finance
Sector Spotlight: manufacturing writes Fardeen Nariman, director, corporate finance
Background
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.
Outlook
Despite increasing concerns around the effect of both tighter regulation and political events on dealmaking, 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 significant 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.
Fardeen Nariman 07500 372070
fardeen.nariman@
quantuma.com
quantuma.com
Fuelling Growth for SMEs and The Mid-Market
Mechanical Handling £10,000,000
Asset Based Lending Management Buy Out
Health and Beauty Undisclosed
Asset Based Lending Management Buy Out
Construction £12,000,000 Asset Based Lending
Private Equity Cash Out
To discuss your funding requirements in confidence, contact Andrew Rutherford, Commercial Director on 07825 805663 or at
AndrewRutherford@arbuthnot.co.uk
Gatwick Office: The Beehive, City Place, Gatwick, RH6 0PA. Registered in England and Wales No. 10915339. Registered Address: Arbuthnot House, 7 Wilson Street, London EC2M 2SN.
www.arbuthnotABL.co.uk
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businessmag.co.uk
THE BUSINESS MAGAZINE – JULY/AUGUST 2019
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