If your company has amassed sufficient capital to make a strategic acquisition this year, then you’re probably wondering which industries are likely to be the most profitable to invest in.
To help you with your decision-making, we’ve compiled a selection of the flourishing industries that are well-positioned to thrive in 2025. These industries to invest in include:
- Transport and storage
- Construction
- E-commerce
- Cybersecurity and AI
- Food and drink manufacturing
- Fire safety
What’s more, we will go into enlightening detail as we cover each industry to give you the latest statistics and projections so you can plan your M&A strategy for this year.
Finally, we’ll explain what a business broker is and how they can help you with your potential purchase.
Keen to get started? Let’s dive right in, starting with the UK’s fastest-growing sector!
Transport and Storage
Yes, that’s right – the transport and storage sector has really been booming over the last few years in the UK; so much so that it reached a market size of £400 billion in 2023. What’s more, it is predicted to grow a further 19.7% by 2028, so the industry is showing no signs of slowing down – making it a prime candidate for investment.
Another benefit of this sector is the sheer array of acquisition opportunities it affords, from investing in warehousing or haulage businesses to courier companies. The latter really came into their own during the pandemic, when people turned to online shopping to avoid having to shop in public.
Who knows – you could find your company following in the footsteps of Apollo Funds, which acquired Evri in 2024 for £2.7 billion.
Construction
The construction industry is another cornerstone of the UK economy, providing employment for over 2.6 million workers in 2024. Although the sector struggled a little in 2024, it is still forecast to grow over the next few years and is projected to generate a revenue of over £476 billion in 2027.
These growth opportunities will come from the government’s proposed investment in infrastructure, detailed in the Autumn Budget, as well as from the ongoing need for commercial and domestic maintenance and repair.
As with the transport sector, there are plenty of acquisition opportunities available in the construction industry, to suit diverse M&A budgets.
E-commerce
E-commerce has blossomed into a thriving industry in the UK, helped in no small part by the pandemic-prompted shift in shopping habits in favour of online platforms.
According to Statista, in 2024 the UK market reached a value of approximately £130 billion and is only likely to grow, making it a prime field for acquisition investment.
Some of the e-commerce trends to be aware of as we progress through 2025 include:
- Increased use of AI shopping aids, from AI customer assistants to tools that promote supply chain optimisation and accurate forecasting of product demand.
- A focus on boosting customer loyalty as opposed to finding new customers for one-off transactions.
- Providing a holistic omnichannel shopping experienced that unites brick-and-mortar stores with e-commerce options.
Consequently, if you are keen to acquire within the e-commerce sector, focusing on businesses that are primed to evolve and meet these changing industry and customer requirements has the potential to be a valuable corporate move.
Cybersecurity and AI
Cybersecurity and AI seamlessly meld together to form an appealing investment opportunity in 2025, as the demand for enhanced cyber protection remains strong. The risk of cyber-attack is a very real and serious threat for businesses of all sizes in the UK, with the potential to cost them significant amounts of money and their reputation.
As a result, cybersecurity businesses are likely to have no decline in demand for their services and products, while AI – particularly generative AI and AI-powered analysis tools – are sure to become a powerful complementary investment.
Ironically, while AI can be highly useful when it comes to boosting cybersecurity, it also now serves as the foremost threat, with AI malware being capable of disguising itself more effectively and creating bespoke phishing schemes that more easily creep under the radar.
With so many sophisticated threats to guard against, cybersecurity businesses seem set to thrive in 2025 and beyond, making them an intriguing investment opportunity for would-be acquirers.
Food and Drink Manufacturing
Acquiring within the food and beverage manufacturing sector is an option to consider as part of your M&A strategy for the coming years.
With an estimated worth of over US$149 billion in 2023, the industry is primed for a CAGR of 12.6% between now and 2032 and is forecast to have amassed a value of over US$460 billion by that time.
If you have an interest in investing in this sector, there are some key trends to research.
- Frozen and snack foods are liable to remain in high demand, as time-strapped consumers seek options that are as convenient and simple to prepare as possible.
- It is also predicted that consumers will continue to demand a wide selection of world food options, providing a rainbow platter of new flavours, textures, and meal options to try.
- Sustainable and ethically sourced food and drink products should also remain popular, as customers continue to strive for a more environmentally friendly form of consumption (within their budget).
In general, M&A opportunities within this sector seem quite robust, with the industry remaining resilient despite battling interest hikes and inflation and offering ‘a broad appeal’ to an array of investors, both within the UK and overseas.
Fire Safety
Finally, the fire and security market in the UK is burgeoning because of changing regulations and a demand for more sophisticated safety measures in commercial and residential buildings. Specifically, new legislation places more responsibility on the owners and managers of buildings regarding the safety of the occupants.
As a result, the demand for a variety of fire safety services seems set to remain robust.
To tap into this market, companies may wish to follow in the footsteps of the Mitie Group, which recently acquired Argus Fire for £38 million. Last tax year, Argus Fire generated revenue of £44.3 million and reached an EBITDA of £38 million, demonstrating the potential financial benefits of investing in this industry.
When it comes to potential acquisitions, there are hundreds of fire safety businesses in the UK, including many small businesses which could represent valuable opportunities to investors.
Why use a business broker for your acquisitions
Whatever industry you are keen to invest in, it can be a significant advantage to use a business broker to help with your M&A strategy.
After all, business brokers have an abundance of experience when it comes to orchestrating mergers and acquisitions, from giving valuations to assisting with the negotiation process and due diligence.
As a result, they can guide you through the entire journey, providing invaluable assistance and advice as you move through the stages of buying a business. This level of expertise can prove particularly beneficial if you are new to the M&A process and find it all a little intimidating.
Of course, business brokers require a fee for their services, but if you have sufficient capital to invest in their assistance then it can remove a lot of stress and confusion from the process, as well as helping to speed things along.
Harris Acquire – here to help
Whether you are keen to embark on a potentially lucrative merger or acquisition, our friendly and experienced team at Harris Acquire is eager to assist.
We can take you through all the stages of buying a business, from narrowing down acquisition prospects to initiating contact, helping with due diligence, and finalising a deal.
If you would like to enlist our services, don’t hesitate to give us a call on 01926 757100 or send an email to Hello@harrisacquire.com.
