The UK is one of the top countries in the world for business, boasting plenty of opportunities for investors and entrepreneurs. If you’re looking to minimise risk, acquiring an existing business is a great alternative to starting your own.
Buying a business requires a significant investment, so it’s important to give the decision careful consideration. The best business to buy is one that’s part of a fast-growing niche, with enough space in the market to compete.
Here at Chelsea Corporate, our M&A experts have years of experience finding lucrative, off-market acquisition opportunities for our clients. In this guide, we’ll discuss six of the fastest-growing UK industries to buy into.
1. Transport and Storage
According to the Office of National Statistics, transport and storage is currently the fastest growing industry in the UK. The sector has seen strong growth in recent years, primarily thanks to a surge in online shopping post-pandemic. The number of new businesses in the industry increased by a huge 21% from 2019-2021 alone.
There are many different distribution and storage businesses you could acquire, including haulage companies, warehousing and courier services. If you have experience in the sector or can offer innovative solutions, this could be a profitable niche for you to get involved in.
The construction industry underpins much of the UK economy, employing around 3.1 million people (over 9% of the workforce). The total of new construction companies increased by 5% from 2019-2021, making it one of the most profitable industries (UK). Residential construction, in particular, is one of the fastest growing industries in the world.
The construction niche covers an enormous range of businesses, from small home repair firms to large global conglomerates. If you’re looking to acquire a business in this industry, the team at Chelsea Corporate can help you find the perfect match.
3. Food and Drink Manufacturing
While restaurants were hit hard by the pandemic, food and drink manufacturing remains one of the fastest-growing businesses. UK food and drink is a sector on the rise, being worth £112 billion as of 2021 and growing 4.2% in a year. As food is a necessity, it’s also one of the most recession-proof industries to buy into.
Food and drink manufacturers that can quickly adapt to changing consumer trends enjoy particular success. For example, consumption of plant-based meat and dairy alternatives doubled between 2017-2019 and is predicted to continue rising.
4. Education Technology
The education technology industry is booming worldwide: the UK market alone is worth approximately £3.5 billion. The rise in edtech companies has primarily been fuelled by the COVID-19 pandemic, as schools and universities have gravitated towards online learning. However, as one of the fastest growing sectors in the UK, there are no signs that this industry will slow down any time soon.
If you’re looking for a niche with huge potential for growth, an education technology firm could be the best business to buy shares in. A huge number of start-ups have enjoyed success in recent years, including FutureLearn, Macat and Kano Computing.
In recent years, ecommerce has become one of the most profitable business industries in the world. As with the transport and storage industry, this is primarily thanks to the COVID-19 pandemic, which has fundamentally changed the way we shop. In particular, on-demand marketplaces specialising in same- or next-day deliveries of food, fashion and beauty have been particularly popular.
Ecommerce is undoubtedly one of the fastest growing business sectors (UK). In 2020, it made up 32.5% of the country’s retail sales – a figure that is predicted to increase to 38.6% by 2025. An online store is undoubtedly the best type of business to buy if you’re interested in the retail niche.
The healthcare industry is thriving in the UK. Thanks to an ageing population and advancements in medical technology, there’s a growing demand for medical services. In 2019, healthcare made up 10% of gross domestic product (GDP). This is forecast to increase year on year.
The industry encompasses a wide range of businesses, including pharmaceutical companies, care homes and private hospitals. If you’re seeking a stable investment with huge profit potential, healthcare is one of the best business industries to look into.
Contact an M&A Expert at Chelsea Corporate Today
Choosing an industry to invest in is only the first step to buying a business. Finding a lucrative acquisition opportunity can be difficult – most UK businesses are sold off-market, without ever being advertised.
That’s where Chelsea Corporate come in. As buy-side M&A experts, we specialise in finding and vetting successful, off-market businesses whose owners want to sell. We’ll match you with the perfect opportunity in your chosen niche, carry out due diligence and help negotiate a great deal on your behalf.