Expert opinion

Why construction SMEs must consider mergers and acquisitions

Rick Martignetti considers whether Mergers and Acquisitions (M&A) might just be the key for construction leaders looking to navigate the headwinds in their sector.

4 mins
August 16, 2022
Words:
Rick Martignetti
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Report

Amid rising raw material costs, inflation, war in eastern Europe, Brexit and the hangover effect from the pandemic, the construction industry is in the middle of a perfect storm and many companies need solutions.

Smaller construction companies might consider a merger as a way not just to stabilise, but ultimately be a successful business in the short to medium term. This is largely down to the pulling power, or indeed lack, of a company’s earnings. As a rule of thumb, if a company’s earnings are around £2 million, they should certainly consider the potential benefits of a merger with another business (often a known competitor of the company in question) of a similar or slightly larger quantum, to push the figure up towards the £5 million mark. Rick Martignetti, Manager - Business Funding, looks at the issue in Construction Update magazine…

To download a copy of the company’s latest ‘Shaw Report’ which looks at the Property & Construction sector visit here

Words:
Rick Martignetti
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