The price being paid for companies is also at a new high, something that BDO attributes to private equity enthusiasm for the sector.
In 2013, the average multiple was 5.0x Ebitda; today it has reached 6.9x.
In 2016 some 22% of UK transactions received private equity investment. Despite Brexit uncertainty, the fall in sterling will continue to buoy the flow of cross-border transactions, and could well encourage a surge of opportunistic buys, BDO speculates
BDO鈥檚 report says there is string international interest in acquiring UK plant hire companies and consolidation in the builders鈥� merchant materials sectors are expected to continue.
Other sectors with strong M&A activity are HVAC (heating, ventilation and air conditioning) and security & access, both of which are seeing technology driving market growth.
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