Optimism for the year ahead: LDC’s outlook for West Midlands in 2025

Chris Handy, Partner and Head of West Midlands at LDC recaps the year that’s been and discusses what 2025 has on the cards for the region’s M&A and business landscape.
The M&A landscape in the region has been challenging over the last couple of years but despite the ups and downs in 2024, our team in Birmingham had a good year and celebrated several milestones.
We invested in Dudley-based lift repair and maintenance company Deltron to support the management team as it expanded its services and kick-started a buy-and-build strategy. In the first three months of our partnership, Deltron acquired five complementary businesses in a move that has increased its unit density, expanded its geographic reach across the UK and accelerated growth.
Deltron wasn’t the only portfolio company to explore acquisitions. Earlier in the year, we supported Bramble Foods Group, a leading manufacturer and distributor of fine foods, on its acquisition of The Bay Tree Food Co, an award-winning manufacturer of branded chutney, relish, sauces and jam.
Our year then culminated in the exit of Independent Governance Group (IGG), a provider of professional pensions trusteeship and governance services, following a successful partnership that saw the business complete five complementary acquisitions and increase revenues and headcount by more than 300%. The IGG management team has delivered exceptional growth and we’re now continuing to support their journey following our reinvestment.
What’s on the horizon?
With greater clarity over policy following the election and budget this year, we’re hopeful that a more stable environment for businesses will drive further M&A activity in 2025 and I’m already seeing green shoots in the market.
Management buyouts will likely remain a key feature of the market and I expect a continued focus on buy-and-build growth strategies as companies in the region look to scale. Buy-and-build remains a popular strategy for any management team looking to drive geographic or service line expansion, regardless of sector.
When it comes to sectors driving M&A activity, there’s real potential in the growth of the technology industry. The region is home to UK’s largest technology hub outside of London and some of the sector’s most innovative businesses that will no doubt continue to attract investment in 2025. We’re seeing this firsthand across our own pipeline.
Sectors that have been historically more robust, such as healthcare and industrials, will also continue to attract attention. The West Midlands’ status as a leader in innovation across both industries will likely persist, supported by the government’s increased focus on healthcare and the anticipated launch of its industrial strategy, which is due to be published in the spring.
We’ve also seen positive changes within the region’s advisory community, which has evolved significantly over the last 12 months, and we’re expecting this to continue as we progress through next year. Firms are expanding their sector focuses while investing in their regional teams in an effort to strengthen the support available to businesses. This mirrors our own regional model, and we’ve seen first-hand the benefits that a national sector team can bring to the management teams we support.
Backing ambition
No matter what the M&A landscape looks like in 2025, we’re sure of one thing: we’ll continue to back ambitious management teams across the West Midlands. Our region has burgeoning potential and given the relationships we’ve built with local businesses and the advisory community, we’re well placed to help management teams realise their growth ambitions.