Horizon scanning: The next phase of mid-market buy-and-build
Looking ahead, three themes are likely to define the next phase of UK mid‑market consolidation.
First, business services will remain the primary engine of buy‑and‑build activity, particularly in sub‑sectors adjacent to infrastructure, regulation and critical services, where fragmentation and compliance complexity persist.
Second, technology acquisition will become more selective, with acquirers prioritising defensibility, data maturity and integration potential over growth narratives alone.
Third, serial acquirers should expect greater regulatory and stakeholder scrutiny as concentration increases within certain verticals. This places additional emphasis on disciplined execution and credible long‑term strategy.
The buy and build strategies developed by UK corporates have some clear hallmarks. Ultimately, the focus is on fragmented and asset-rich sectors, which presents not only a good opportunity for market consolidation, which can help drive efficiencies, but also integration into existing platforms, too.
The big question is what comes next? Given the healthy deal flow we’ve seen across the last five years, it’s quite possible that we’ll see a growth in exits to private equity, though it’s equally possible that we’ll continue to see strong buy and build activity. After all, two of the sectors in question – business services and industrials – are pretty ever-green, whilst technology, which has displayed impressive growth, is hot property amid the AI boom. Ultimately, though, the signs are positive for UK plc.
Jonathan Steele, Corporate Partner, Stevens & Bolton (quote lifted from press release)