91 M&A deals delivered in hospitality sector in last year

Some 91 merger and acquisition deals were delivered during the year up to June 30 2022 in the hospitality sector, of which 77% were completed by UK buyers, according to Shaw and Co.

The corporate advisory firm has launched its second annual in-depth report into the Food and Drink sector. The report segments 1,905 businesses with earnings of over £1m by size and sub-sector to track their performance, profitability, debt levels, borrowing capacity and M&A activity.

The report also found that the industry is “highly concentrated”, with just 7% of the 1,905 companies analysed accounting for 76% of turnover.

However, with larger firms’ sales declining, the data shows how effective smaller businesses have been at competing with the giants, with many seeing their sales rise.

Alexei Garan, director, head of debt advisory at Shaw and Co and editor of the report, said: “We are delighted to have launched this, our second annual, in-depth Food and Drink sector report. We hope it will help SME business owners benchmark their own and their peers’ performance in the sector and aid their decision-making processes.

“Our aim is to provide small business leaders with free access to the same market intelligence as larger blue-chip corporations, who benefit from investment banking advisors. The report will also provide SMEs with valuable insight in terms of their relative creditworthiness and attractiveness from an M&A point of view.”