Thomas Scott & Co brings deep insights and expertise necessary to facilitate the successful sale of your manufacturing and distribution business. Whether you’re looking to pursue a new venture or retire, selling your business can be a great way to realize value and ensure the continuity of your business’s legacy. The manufacturing and distribution sector plays a pivotal role in the UK economy, with the industry projected to continue growing significantly in the coming years.
M&A activity remains strong within the manufacturing and distribution industry, driven by interest from private equity and strategic consolidators looking to expand their operations and gain a competitive edge. For business owners, a trade sale offers a compelling opportunity to pass on ownership while ensuring that your customer base continues to be serviced effectively. This option can attract strategic buyers who see synergies with your business and are willing to pay a premium to secure those advantages.
Alternatively, you may want to explore other exit strategies such as an Employee Ownership Trust (EOT) or a Management Buyout (MBO), where you sell the business to your employees. These options can be more tax-efficient and ensure that your business is passed on to the people who know it best—your team. However, these routes may offer a lower valuation than a trade sale due to the structure and financing methods involved.
To learn more about how we can assist with the sale of your manufacturing and distribution business—from industrial equipment producers to supply chain companies—request a business valuation or contact Thomas Scott & Co today.
Our service is delivered to precisely match the unique needs of our clients, whether they are navigating the complexities of selling a business or planning for a long term exit. We are dedicated to delivering superior outcomes for our clients, ensuring their satisfaction and success every step of the way.
We pride ourselves on offering a quality service, tailored to exceed expectations. We believe in building relationships that stand the test of time. With each interaction, we strive not only to meet but to surpass our clients’ needs and aspirations, ensuring their journey with us is one characterised by excellence and lasting satisfaction.
We specialise in guiding clients through M&A landscape with clarity. Our team of advisors leverage their understanding of M&A to support at every stage of the process, from initial strategy development to due diligence and seamless execution, we offer tailored solutions that allow our clients to make informed decisions.
The UK manufacturing and distribution M&A sector has faced significant volatility over recent years, with a notable reduction in activity during 2023. Deal volumes in the UK manufacturing and distribution sectors dropped by 18% compared to 2022, while overall deal value saw a sharp decline, falling from £269 billion in 2021 to just £83 billion in 2023. This slowdown has been driven by several economic challenges, including high inflation rates, rising raw material costs, and persistent labour shortages, which have put pressure on many businesses in the sector.
Despite these challenges, there is growing optimism for 2024. As interest rates begin to stabilise and inflation shows signs of easing, the manufacturing and distribution M&A landscape may experience renewed momentum. Companies in these sectors are still highly sought after by both private equity and strategic buyers, particularly those looking to consolidate supply chains, improve operational efficiencies, or expand their market reach.
Looking ahead, the manufacturing and distribution sector is poised for growth, driven by substantial investments in infrastructure, clean energy, and technological advancements. Key legislation, such as the Infrastructure Investment and Jobs Act, the Inflation Reduction Act, and the CHIPS Act, is expected to channel significant funding into the industry. This will boost activities in manufacturing, transportation infrastructure, and supply chain modernisation, creating new opportunities for businesses in the sector.
In the M&A space, mid-market transactions, particularly deals valued between £10 million and £250 million, are expected to be a key driver of recovery in deal-making activity. This segment demonstrated resilience despite the overall economic slowdown, and acquirers are increasingly optimistic about 2024. Buyers are focusing on companies that can capitalize on these new funding streams and industry tailwinds, particularly in areas such as sustainable manufacturing, automation, and distribution network expansion.
We are an independent Sell-Side M&A advisors who are driven to deliver outstanding results for their clients regardless of the size of business or scope of work. As we are sector agnostic we can leverage our buyer base and knowledge to a larger range of clientele on an international scale. As of 2024 we now have operations across 3 countries with global servicing capabilities meaning that we can draw in more acquirers and investor when supporting clients on M&A projects.
