The Armstrong team have worked on a number of deals in the built environment sector over the last year and we are already seeing plenty of interest from mid-market UK investors in 2025. We attended the London Build 2024 Expo last week, here is what we learned… 

Overall, there was a real sense of an industry in transition, that wants to make changes and become safer, more compliant, accelerate tech adoption and become more sustainable, but is unsure how to get there. 

Sectors to watch 

• Fire safety and sustainability stages were packed – these remain some of the hottest topics for people in the built environment. 
• There are opportunities across the circular economy – everything from new manufacturing processes to reduce embodied carbon, to detailed tracking of how products and materials have been used, to reuse and recycling. There are numerous services required across the value chain. 

The technology conundrum 

• Tech adoption across the sector continues to grow, but budgetary and talent hurdles are slowing speed of adoption. 
• BIM and Digital Twin are recognised as the future way of working but ensuring a clean building ‘databook’ and translating BIM applications to site remain challenges over the mid-term. 
• Collaboration between sustainability and digital remains critical to achieving net zero targets. Carrying out a digital & sustainability audit is needed to understand where businesses are on their journey, where they need to go, and how they can get there. 

What investors need to know 

• Retrofit is as much of a challenge (if not more so) than new construction when it comes to ensuring compliance and sustainability. 
• Challenges to the industry are internal as much as external, with a lack of collaboration and skills shortages consistently highlighted. 
• Government housebuilding targets are way beyond current levels, and there is real uncertainty over how these can be met. Numerous areas will need to be examined, from financing and planning all the way through to construction and operation. 

Get in touch with the team to discuss opportunities in the built environment.  

Matt McNally

[email protected]
+44 7894 736 523

Email Matt

Brandon Matthews

[email protected]
+44 7850 564 693

Email Brandon

We’re delighted to welcome back Magnus to the Armstrong team. Based in Stockholm, Magnus will be focused on opportunities in the Nordics. We asked Magnus why the region is attracting UK investors.   

Why will the Nordic markets be attracting UK investor attention in 2025 and are there any specific sectors UK investors should be looking out for? 

Sweden and other Nordic markets are showing signs of recovery after a period of inflation and low growth. Former Swedish finance minister Anders Borg expanded on the cautiously positive macro outlook in his keynote speech at the recent Real Deals Nordics 2024 conference. Sweden’s Riksbank has already cut rates 4 times in 2024 (including a recent -50bps adjustment, not seen for the last 10 years), with further cuts expected next year.  

For investors, debt remains available and fundraising activity is ongoing with several funds able to meet their target caps quickly (others report greater difficulties this year). However, despite the macro outlook, uncertainty remains. This in part explains the proliferation of bolt-on acquisitions (see our recent article on DD for bolt-ons) vs. platform investments. We expect dealmaking volumes to return in 2025; dry powder needs to be deployed, and investors will be under pressure to deliver exits (and returns) to maintain fundraising momentum.  

Sectors to keep an eye on include: 

• Digital transformation trundles on particularly in B2B software and associated professional services. The Nordics have historically seen consistent growth in the tech sectors (OECD is predicting similar future growth), and they have been early and enthusiastic adopters of new technology.   

• Sustainability and the circular economy are important to both businesses and their customers. Companies that can articulate and demonstrate their ESG credentials will attract and retain customers (and importantly, talent).  

• Industrials, though largely cyclical, include segments with strong regulatory drivers e.g. fire safety regulations and niche areas seeing strong growth from accelerating adoption curves e.g. access control / smart building technology. 

• Professional and financial services including accounting services (ripe for roll-up strategies) and legal advisory / compliance services, e.g. areas like CSRD compliance.  

You’ve worked in both regions, how easy is it for UK investors looking at opportunities in the Nordics?  

We’re not reinventing the wheel when it comes to Commercial DD. Investors will always require answers to similar questions, whether it’s getting comfortable with the sustainability of certain market drivers, understanding where there may be headroom issues (e.g. in the vertical software space), the potential for a business to launch new products or enter new geographies (e.g. expanding out of a small domestic market in Sweden), etc.  

We’re always trying to answer:  

1. what is the business today?  
2. where could it be tomorrow?  
3. how do you get there?  

However, it may be more practical to take a modular approach to diligence; focusing on what really moves the needle. In the current uncertain climate, getting comfort around 3-5 key questions ahead of a bid can be incredibly valuable and especially when it needs to be delivered in a cost / time-efficient manner. The same of course applies to bolt-on work, where you may already know the market and competitive landscape but have a blind spot on customer feedback; we can provide the components of CDD as a stand-alone, always with a tailored scope.

If you were advising a UK investor looking at an asset in Sweden, is there anything specific to the region you would recommend considering when scoping due diligence?  

There are a couple of things worth knowing…  

The Swedish Foreign Direct Investment Review Act (Dec-23) is designed to prevent FDIs that may degrade Sweden’s security, public order, or safety. Investors need to notify the Inspectorate of Strategic Products (ISP) ahead of deals in particular sectors. These include; essential services, large scale processing of personal or location data, military equipment, dual-use items, security-sensitive activities, security-sensitive activities, emerging / strategic tech, and critical raw materials prospecting, extraction or enrichment. I would suggest checking whether a target falls into these categories, notify the ISP if necessary or even seek pre-emptive approval before going ahead. Investments from outside the EU in particular can be blocked or made subject to conditions for approval. 

ESG is a key priority for Nordic investors, going beyond compliance into value creation. This will significantly impact exit opportunities and multiples; consider including this in your diligence and value creation plans. 

What three words should a visitor learn to say before visiting Sweden?  

“Hej” – hello 

“Nej tack” – no thank you 

“Sju” – seven; if you can master the “ske-sound”, you can consider yourself an advanced Swedish speaker! 

Magnus Hedberg

[email protected]
+46 76 310 95 52

Email Matt

We provided buy-side due diligence to BGF on its strategic investment in marketing and brand agency BWP Group (BWP). 

Marlow-based BWP is a marketing and brand agency specialising in the destination asset sector (including shopping centres, retail outlets, and leisure and entertainment venues). Established in 1995, BWP has built enduring partnerships with leading destinations such as Trafford Centre, Eldon Square, Lakeside, Livingston Designer Outlet, The Boulevard, Gravity, IKEA, and Karcher. 

BGF’s investment will help BWP expand its reach and strengthen its full-service offerings through strategic acquisitions, developing relationships with clients across the UK and Europe, and pursuing new opportunities in the US. 

Armstrong provided focused CDD including in-depth interviews with experts in property management, leisure and marketing. Our commercial strategy work looked at trends in BWP’s markets (including both the shopping centre and broader leisure space) and helped to develop potential growth strategies. 

Matthew Connor, Investor at BGF said: “We are excited about the opportunity BWP has across various markets, and it was great to work with Jack and the team. They developed a high-value report which helped evaluate our investment hypotheses.” 

Jack Hibbs, Director at Armstrong, added, “We really enjoyed working with BGF and BWP, and are delighted to have helped with the process. We very much look forward to seeing the success of the business going forward.” 

If you are interested in talking to Armstrong about opportunities in the sector, please contact:  

Jack Hibbs

[email protected]
+44 7883 296 346

Email Jack

As we absorb the outcomes of the US election, UK private equity will be taking note of potential policy changes that could impact markets across the Atlantic.  

The UK is already feeling the effects of the Republican victory: confirmation of the result triggered a rally in the dollar, causing the pound to drop by 1% and planned changes to US policy is likely to impact deal flow, valuations, and investment strategies here in the UK. For mid-market investors, the current political landscape in the US could influence everything from financing conditions to the regulatory environment in sectors like technology, healthcare, and renewable energy — areas that are already at the heart of many UK PE portfolios.  

A key area of concern for UK mid-market PE firms is the potential shift in global interest rates, with Trump’s economic agenda likely to focus on growth acceleration through deregulation, lower tax policies and tariffs. These moves could contribute to inflationary pressures, forcing central banks, including the Bank of England, to increase interest rates to stay abreast with international trends. Any ripple effects on UK borrowing rates could tighten financing conditions for PE transactions, particularly for leveraged deals. 

For UK firms with US market interests, Trump’s promise to deregulate and foster a more business-friendly environment could create opportunities, though they may also find that their US competitors face fewer compliance costs and constraints. During Trump’s first term, deregulation was met with frequent reversals and legal challenges which led to confusion and created inconsistencies between federal and state level. This was especially challenging for sectors needing long term clarity such as energy, finance, healthcare and infrastructure – a challenge that is likely to repeat itself. 

It is therefore now more important than ever for UK PE firms looking to invest in UK companies with existing or planned US interests to adopt a flexible and well-informed approach, prioritising comprehensive commercial due diligence and strategic planning to navigate the potential volatility and ensure their investments are resilient to the shifting landscape. 

As CDD experts, we can help our clients identify specific risks and opportunities in the US landscape that may affect target/portfolio companies. Our approach combines a deep understanding of the US regulatory and economic context with local insights that matter for UK investors, enabling us to deliver actionable intelligence for strategic decision-making. Deep sector-specific knowledge also allows us to interpret political changes within industry contexts, adding insight into how these shifts might affect customer preferences, product viability, and growth projections. This ensures our clients are not only resilient to global changes but also well-positioned to capitalise on new opportunities arising from policies under the second Trump administration. 

Speak to a member of the team about the impacts and opportunities discussed.  

Gabriel Leggo

[email protected]
+44 7772 623 607

Email Matt

We provided commercial due diligence to LDC on its significant investment in credit risk technology group LendingMetrics.

Founded in 2010, LendingMetrics provides software and data solutions to hundreds of companies to make highly sophisticated automated and risk-based lending decisions.

The investment and strategic guidance from LDC will help accelerate the development of new products within its core financial services sector and expand its network of partners in the consultancy and data services division. The deal will also allow LendingMetrics to explore complementary acquisitions and diversify its presence in new industries with similar credit risk challenges, such as telecoms, utilities, and insurance.

Armstrong’s full scope due diligence work included market referencing, detailed analysis of its addressable market, competitive environment, and a commercial review of its business plan.

Solomon Ishack, Engagement Manager at Armstrong, said: “We really enjoyed working with LDC and LendingMetrics, and are delighted to have supported with the transaction. LendingMetrics is an excellent business, and well positioned for future growth with LDC’s backing. We look forward to seeing the business continue to succeed in the next stage of its journey.”

Oliver Schofield, Investment Director at LDC, added: “Neil, David and the wider LendingMetrics team have built a highly sophisticated and disruptive technology stack that is at the cutting edge of credit risk technology and has made the business a critical, trusted partner to their clients. We’re excited to be backing the team and helping them to scale in what is a fast-growing and rapidly evolving market.”

If you are interested in talking to Armstrong about opportunities in the financial services sector, please contact:

Solomon Ishack

[email protected]
+44 7943 033 663

Email Jack

Simon Hemsley

[email protected]
+44 7957 340 534

Email Simon

Armstrong is pleased to have provided commercial due diligence to Connection Capital (Connection) on its management buyout of specialist insurance intermediary Hood Group. 

Based in Essex with over 30 years in the insurance industry, Hood Group works with start-ups, consumer brands and large insurers to transform their insurance proposition by delivering innovative business models and products through their niche software platform.  

Connection’s investment will enable Hood Group to accelerate its growth strategy while continuing to provide market-leading insurance solutions to its partners and clients. 

Armstrong’s due diligence work included in-depth interviews with Hood’s clients and partners, along with detailed analysis of its addressable market, competitive landscape, and growth plans. 

Rupert Cookson, Engagement Manager at Armstrong, said: “It was great to work with the Hood management team and Connection to support on this deal. Hood Group is an excellent business operating in an attractive market and is well positioned for growth. Connection’s backing will help Hood’s growth plans and we look forward to following the business as it goes from strength to strength.” 

Mark Snaith, Investment Director at Connection Capital, said: “We enjoyed working with the Armstrong team on this transaction. Their industry knowledge and in depth commercial due diligence helped us to assess the opportunity and further validate our expansion plans.” 

If you are interested in talking to Armstrong about opportunities in the financial services sector, please contact:  

Rupert Cookson

[email protected]
+44 7983 110 150

Email Jack

Matt McNally

[email protected]
+44 7894 736 523

Email Simon

Armstrong is pleased to have provided commercial due diligence to WestBridge on its significant investment in Causeway Securities, a leading international distributor of structured products. 

Founded in 2016 and headquartered in Belfast, Causeway Securities serves as an intermediary between leading investment banks and a client base of over 300 wealth managers, IFAs, insurance companies, and credit unions. With a global presence spanning the UK, US, and other international markets, the company is committed to accelerating its international growth, with a key focus on expanding in the US. 

The transaction will allow Causeway Securities to drive their ambitions for geographic expansion through organic and acquisitive growth initiatives. 

Armstrong’s due diligence work included in-depth interviews with Causeway’s clients and partners, along with detailed analysis of its addressable market, competitive landscape, and growth plans. 

Rupert Cookson, Engagement Manager at Armstrong, said: “Causeway is a fantastic business and a very strong team with ambitious growth plans. The structured products market is highly attractive and Causeway is a true leader in the space. We thoroughly enjoyed working with the Causeway and WestBridge teams, and look forward to seeing continued success.” 

James MacLeay, Investment Director at WestBridge, said: “Rupert, Simon and the Armstrong team helped us to clearly assess the market and growth opportunities for the business. Their in-depth analysis and understanding of the financial services sector allowed us to assess the opportunity and further validate our expansion plans.” 

If you are interested in talking to Armstrong about opportunities in the financial services sector, please contact:  

Rupert Cookson 

[email protected]
+44 7983 110 150

Email Jack

Simon Hemsley

[email protected]
+44 7957 340 534

Email Simon

Following a rough couple of years, the outlook for many businesses in the consumer sector is more positive; some segments of the market are well placed for growth and resilient to macro-economic pressures. 

We have recently analysed the market for high street healthcare providers; a market that is better protected from the threats many retail businesses are exposed to. Reasons include: 

• purchase triggers tend to be healthcare related (non-discretionary);  
• routine checks mean visits are recurring; 
• customers are typically loyal; and  
• physical stores are unlikely to be replaced by e-commerce.

Evaluating the business opportunity for specialist markets is our bread and butter and we’ve helped investors answer important questions, for example: 

Is the business operating in an attractive market? 

Businesses we analyse typically sit in a small sub-segment of the wider market and the dynamics are often different for these players versus large-scale leaders. It is important to understand why customers value businesses in these niches and if demand will be resilient over time. 

How realistic is it to scale the business? 

These companies are very good at what they do, have a trusted brand and a loyal customer base. But their market is niche. There will be opportunities to expand into adjacent products and new markets. Investors need to understand those opportunities and get comfort that the business is ready for the changes needed to successfully scale. 

Is M&A an attractive growth strategy? 

These markets are often highly fragmented and scaling through buy-and-build can be lucrative. It is vital to fully understand the landscape and likely competition when it comes to an acquisitive strategy. This will ensure appropriate returns will be realised. 

Where are vulnerabilities in the supply chain and how are they managed? 

Transportation, import red tape, inflation and scarcity of raw materials have impacted UK and global supply chains. Uncertainty is the only certainty. It is key to understand how target companies have responded and what mitigations they have in place for future shocks.  

Is there a proven commitment to R&D and the talent pipeline? 

Many of these products depend on their innovation to stay cutting edge. There is less threat from low-cost manufacturing centres e.g. China, as quality is paramount and volume is not required. Competition remains from comparable providers both in the UK and in Europe/US/Japan. Investors will want to know the plans the business has to evolve its products and who will drive that innovation.  

Speak to a member of the team about opportunities in the consumer sector.

Jack Hibbs

[email protected]
+44 7883 296 346

Email Matt

We provided buyside commercial due diligence to Key Capital Partners (Key) on its strategic growth investment in theICEway, a specialised cruise technology company. 

With a strong reputation for delivering cutting-edge IT solutions tailored to the cruise industry, theICEway has become a trusted partner to cruise operators and travel companies worldwide. Their innovative technology services include cloud solutions, managed services, system integration, and digital transformation, helping clients navigate the unique challenges of the maritime industry. 

The growth investment from Key will further support theICEway’s ambitions to remain at the forefront of technological advancements. With an increased focus on innovation, the company plans to develop new services, reinforce its infrastructure, and enhance its presence in key markets. This partnership will also allow theICEway to invest in talent and expand its team to meet growing client demand. 

Armstrong provided focused CDD including in-depth interviews with theICEway’s clients, partners and IT vendors, alongside conversations with numerous other cruise specialists. Our commercial strategy work looked at trends in theICEway’s markets and helped to develop potential growth strategies. We also provided a detailed assessment of the software propositions available to cruise operators. 

Hannah Kirkup, Investment Manager at Key said: “We are pleased to have completed our investment in theICEway with the support of Jack and the Armstrong team. They carried out extensive interviews and a detailed assessment of the market. This gave us clear & useful insight to support our investment hypotheses.” 

Jack Hibbs, Engagement Manager at Armstrong, added, “We really enjoyed working with Key and theICEway, and are delighted to have helped the transaction. theICEway is an excellent business and feedback from clients, IT vendors and partners all validated its clearly differentiated position in the market.” 

If you are interested in talking to Armstrong about opportunities in travel and technology, please contact:  

Jack Hibbs

[email protected]
+44 7883 296 346

Email Jack