Building Products Sector Snippet
Despite the predicted decline following the EU-Referendum and a slightly slow start to 2017, construction levels have increased in both the domestic and commercial sectors, with levels expected to continue rising over the next two years. That level of activity has provided growth throughout the construction supply chain, in particular, building products which has also seen increasing levels of M&A activity as a result.
Impressively in the 12 months to June 2017 building products, M&A has seen:
- 25% increase in deal volumes.
- Valuations range from an average of 6x to 9x EBITDA.
- 25% of deals completed by an overseas buyer.
- 80% of deals sold to a trade buyer.
- An increase in private equity activity.
Given the underlying fundamentals of the UK domestic, commercial and infrastructure construction sectors we expect deal volumes to increase as UK consolidation, overseas appetite and private equity activity continues.
If you are considering your strategic options for enhancing the value of your business or your client’s business, please get in contact with me.
ORBIS PARTNERS: BUILDING PRODUCTS DEALS