JANUARY 2026
Europe’s advanced manufacturing sectors have seen M&A rationales shift. Buyers now pursue deals not just for scale or market share, but to secure capabilities, talent, technologies, and supply chain resilience. Strategic buyers and private equity investors are rethinking deal origination, with value creation starting well before due diligence through identifying the right targets.
This explains why M&A target screening, also known as acquisition screening or target analysis, ranks among the most strategic and integral elements of any M&A process lifecycle .
Europe’s advanced manufacturing faces multi-year consolidation driven by structural shifts including reshoring and supply chain de-risking, automation and robotics adoption, digitalisation via MES, SCADA, and IoT, electrification of fleets and machinery, ESG compliance and energy efficiency mandates, scarcity of specialised engineering talent, and fragmented mid-market supplier ecosystems.
Recent deals reflect this trend: Rieter (Swiss textile machinery) received all regulatory approvals for the completion of the acquisition of Barmag (German textile machinery) from OC Oerlikon, which is planned to be completed at the beginning of February 2026, strength-ening its spinning technology capabilities. Strategic buyers like EQT and Nordic Capital have pursued platform and bolt-on acquisitions across industrial automation and manufacturing technology, while global industrial groups such as ABB and Bosch continue to invest in electrification and automation competencies.
Unlike software or consumer markets, industrial value chains comprise dozens—or hundreds—of small, specialised firms rarely listed for sale, breeding informational asymmetry. Relying on intermediaries limits visibility, fuels crowded auctions, inflates prices, and weakens bidder edges. Screening flips this dynamic: buyers define their goal first, then map fitting targets.
Reindustrialisation driven by resilience and sovereignty agendas, energy transition mandates requiring equipment retrofits and consolidation, and technology upgrade cycles in automation, robotics, and digital controls make 2026 a strategic window where acquisitions outpace organic growth. From DACH and Benelux to the Nordics, mid-market industrials consolidate in sub-sectors such as robotics and motion control, precision components and machining, industrial automation and machine vision, additive manufacturing, powertrain electrification, industrial software and digital twins, materials and coatings, and energy storage and battery systems.
These areas feature fragmentation with founder-led specialists, cross-border needs, and capability-driven logic, making proactive origination essential for winners.
M&A target screening systematically identifies, evaluates, and prioritises acquisition candidates using strategic, operational, and financial criteria.
Modern approaches transform informal "lists" into data-driven, purpose-led processes that address five core questions: what capabilities, markets, or technologies are needed; why now, considering timing, competition, and macro trends; which targets match the goal; how strong is the strategic and financial fit; and which warrant first engagement.
Screening builds pipelines of relevant targets, sale-ready or not, accelerating capability access, cross-border expansion, synergy modelling, and IRR uplift while avoiding auctions.
EASY PROCESS
Our team at Kyiv Consulting delivers consulting-grade screening in three stages, culminating in a comprehensive investigative report tailored to your sector and territory.
Stage 1
We work with the buyer to define and refine the acquisition goal and screening criteria, including metrics such as technological adjacency, EBITDA thresholds, IP depth, ESG exposure, and geographic fit.
Stage 2
Our team builds and segments a broad target pool, including lists of potential M&A targets meeting your criteria, into high-fit candidates, adjacencies, and long-term options.
Stage 3
We assess shortlisted targets through strategic fit scoring, capability and adjacency analysis, scenario-based value potential, synergy logic and risk assessment. This results in a prioritised set of M&A options with a clear rationale for engagement and next steps, forming an evidence-based roadmap for corporate development or buy-and-build execution.
Such a structured approach reduces uncertainty in deal origination, enabling advisory teams to focus diligence and client resources on targets with the highest strategic and economic relevance.
Screening proves most valuable in fragmented ecosystems, cross-border opacity, platform or buy-and-build strategies, capability-driven M&A (e.g., robotics for automation), and talent-scarce markets. It boosts returns by enhancing value capture, speeding capital deployment, cutting costs, and enabling low-multiple acquisitions for premium exits.
Passive buyers face auction premiums, misaligned targets, diligence waste, and post-deal failures. Screening also bridges to integration by flagging risks like production compatibility, talent retention, certifications, contracts, systems, and cultural friction early.
Kyiv Consulting’s Research & Analytics Hub has supported 50+ European clients with end-to-end M&A target screening . Deal advisory teams trust us to deliver solid investigative reports on sector and territory, curated lists of M&A targets matching criteria, financial performance forecasts for each target, and actionable recommendations aligned to a certain purpose.
Secure your edge in platform acquisitions or cross-border expansions before auctions heat up.
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