CIL report reveals bright spots for ‘buy & build’ investments across Europe
Investors are finding high-potential opportunities for consolidation across six European regions, according to a new report from CIL Strategy Consultants. The report analyzed over 2,500 build & buy business segments to identify where dealmakers face the brightest spots to create long-term value.
The research found that while simply scaling up was once the primary goal, success now depends on the quality of the platform and deep integration. While ‘dry powder’ remains near record highs, dealmakers are according to CIL Strategy Consultants operating in a more selective environment.
A report from last year on M&A from the strategy consulting firm found that buy & build was the favorite value creation strategy for the third year in a row, but that operational improvement and commercial effectiveness are now just as important for investors.
In the world of mergers and acquisitions, a build-and-buy strategy combines organic growth (“build”) with acquisitions (“buy”) to accelerate expansion and strengthen market position. Companies use this approach to add capabilities, enter new markets, achieve scale more quickly, and create synergies between acquired businesses and existing operations.
Alex Marshall, senior partner at CIL Strategy Consultants, said: “Buy & build has always been a core private equity value creation strategy, but it’s getting harder. Great outcomes are now driven by more than scale alone – the quality of the platform is coming under ever greater scrutiny, and thus a critical determinant of exit value.”
Strategic shifts in UK and Ireland
The United Kingdom and Ireland are seeing a transition toward technology-enabled platforms. In the student accommodation sector, there is a shortfall of 580,000 beds, which is driving significant investment despite recent policy changes.
Investors are also focusing on market research and polling by combining specialized capabilities with AI and proprietary data. Furthermore, technical building services remain attractive because they are supported by essential safety obligations. In this sector, firms that can effectively recruit and retain certified engineers will likely command a premium.
Digital Trends in the Nordics and Benelux
The Nordic countries represent some of the most digitized economies in Europe, yet many professional services remain fragmented. Recruitment agencies are a primary target due to chronic skills shortages.
Investors are seeking to automate candidate matching and standardize compliance across four countries. In the gym sector, platforms are using technology to manage yields in a market that typically has low margins. Additionally, the IT asset disposal industry is growing as platforms automate the refurbishment of electronics to meet new European regulations.
In the Benelux region, nurseries and specialist cleaning services are high priorities. Approximately 70% of Dutch nurseries reported waiting lists in 2025, suggesting a massive undersupply. Scaled platforms in the cleaning sector are also using environmental credentials to win large corporate contracts.
Meanwhile, the camping sector in this region includes over 3,300 sites, where the ‘glamping’ trend is helping to turn traditional campsites into higher-yield assets. Much of these camping grounds are in the Netherlands and Belgium.
Industrial growth in Germany and France
Germany offers unique opportunities due to succession challenges in businesses managed by their owners. The technical ceramics market, which includes more than 80 specialists, provides vital components for the aerospace industry.
Specialist cleaning in Germany is particularly lucrative, with margins of 17.5%, nearly three times the rate of general cleaning. The camping market in Germany is also evolving into a structured asset class that utilizes dynamic pricing and digital booking systems.
In France, the focus is on industrial maintenance and technical testing. Because the average French machine is 19 years old, maintenance is necessary to maintain productivity. Investors are looking at predictive maintenance as a way to increase profit margins. Tighter European regulations regarding product safety and environmental reporting are also driving growth in the technical testing and analysis sector.
Resilience and expansion in Iberia
The Iberian market is benefiting from strong momentum in student accommodation and tourism. Provision rates for student housing in Spain and Portugal are significantly lower than the European average, while international enrollment has reached record highs.
The camping sector has also proven resilient as hotel prices rise. A surge in motorhome tourism is helping these businesses stay busy beyond the traditional summer peak. Spain and Portugal are home to a large number of stunning national parks and camping remains one of the most affordable and resilient holiday formats in southern Europe, especially as hotel prices continue to climb and regulation curbs Airbnb supply.
Finally, the manufacture of kitchen furniture remains a fragmented market with more than 2,500 small workshops, providing a clear path for automation and consolidation. In Spain especially, kitchen production value has grown steadily over the past decade, but the market remains highly fragmented. There has been some consolidation in recent years, however, and more is likely to come.
