The global building products & services sector saw another rise in M&A transactions in 2025 after a record uplift in 2024.
According to BDO’s annual Building Products & Services report, in association with the Construction Products Association (CPA), 1,527 transactions were completed worldwide in 2025. The UK saw a small drop in overall deal volumes after 2024 highs, but private equity-backed groups accelerated bolt-on acquisitions which were up 51% year-on-year.
The US also saw deal volumes drop by 8.3% but the US and UK continued to dominate activity, accounting for two thirds of global transactions. Mainland Europe volumes were up by 15% and its share of global deal activity increased to 19%, reinforcing its growing importance within the sector’s M&A landscape.
Overall, the latest figures show the sector has continued to defy significant M&A challenges in recent years, with more than 7,000 transactions completed worldwide in the last five years. Of these, nearly a fifth (17%) were cross-border.
John Stephan, partner and head of Global M&A at BDO LLP, commented: “Despite geopolitical uncertainty and trade frictions the global M&A market for the sector was up - and despite a challenging UK tax environment, the UK M&A market remained remarkably resilient in 2025. Deal activity was underpinned by strong sector fundamentals and abundant capital, with private equity overtaking trade buyers for the first time as financial sponsors targeted defensive, recurring revenue models.
“Compliance-led sub-sectors, notably fire, safety and security experienced particularly strong activity, much of it driven by sponsor-backed platform and consolidation strategies. These markets continue to benefit from regulatory tailwinds, fragmented ownership and opportunities to scale. We’ve seen this in BDO’s own client base as we have completed a number of deals in the fire, safety and security sub-sector across the whole of the UK and in some global markets.
“Looking ahead, investor interest is expected to remain robust, especially for regulatory-driven businesses and companies with strong IP. We expect corporate M&A to stay selective and strategic, focused on long-term growth, resilience and capability rather than short-term expansion.”