As industrial processes and technologies have become more complex, so the installation and maintenance of facilities has become an increasingly critical and value-added service. Ensuring that plant and equipment consistently operates safely and efficiently minimises downtime and defects, keeping customers happy and protecting margins.
Additionally, in a challenging economic climate, the desire to extend the life of existing assets and avoid substantial capital expenditures has resulted in increasing levels of maintenance spend and hiring of assets. Changing environmental legislation and other regulations can also create attractive opportunities for service companies, and require upgrading or retro-fitting of new technologies.
All these factors have resulted in an attractive environment for businesses operating in the industrial services space. In addition, long-term contracts and recurring revenues provide a predictability of earnings that is attractive to both trade acquirers and private equity investors. Indeed, many traditional manufacturing businesses now make more margin from aftersales and service than from new product sales.
Livingstone has extensive experience of advising Owner Managers, Corporates and Private Equity firms on transactions in the Industrial Services sector. If you would like some advice on what your strategic options might be, or on how to maximise shareholder value, we would be delighted to speak to you. Please call Alex John or Phillip McCreanor on 020 7484 4700.