Building materials companies are undergoing significant transformation, driven by megatrends such as sustainable building design and materials, circularity, prefabrication/modularization, and digitalization.

Explore the key dynamics reshaping the construction value chain, their implications for investors, and trend in the sector’s M&A activity in our latest article:

• M&A Activity: Deals in the sector surged from 2019 to 2022, outperforming overall M&A activity, but have sharply declined in the past two years.
• Strategic Buyers: They dominate M&A activity, offering financial investors good exit opportunities for assets aligned with megatrends.
• Sustainability: This is the second most cited reason for M&A in the sector, following company fundamentals. Other megatrends, including technology, are less prevalent as M&A drivers.
• Private Equity Opportunities: PE firms can leverage buy-and-build strategies to consolidate fragmented sub-sectors or scale companies aligned with megatrends.

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