A new report from CIL Strategy Consultants has highlighted current consolidation opportunities across Europe, as private equity investors refine buy-and-build strategies to drive growth in an increasingly competitive deal environment.
The firm’s European Buy & Build Opportunity Index 2026 draws on analysis of more than 2,500 business segments across six regions – UK & Ireland, the Nordics, Benelux, Iberia, Germany and France – to identify sectors where fragmentation, scale dynamics and market size combine to create attractive roll-up opportunities. The index assesses industries not only on structural characteristics such as consolidation and turnover, but also through commercial and macroeconomic lenses.
According to the report, buy-and-build remains a core value creation lever for private equity, but execution has become more complex. Alex Marshall of CIL notes that scale alone is no longer sufficient to drive premium exits, with greater emphasis now placed on platform quality and the ability to deliver operational integration and organic growth.
Across the UK and Ireland, student accommodation continues to attract investor attention despite regulatory headwinds, supported by a significant supply shortfall and growing domestic demand. Market research and polling is also emerging as a target sector, particularly for platforms that can integrate AI capabilities and proprietary data to move into higher-margin advisory services. Meanwhile, technical building services—driven by non-discretionary safety requirements—offer consolidation potential, albeit constrained by shortages of skilled engineers.
In the Nordics, recruitment agencies stand out due to persistent skills shortages, with investors seeking platforms capable of standardising compliance and automating candidate matching across multiple markets. The gyms sector, while characterised by high participation and thin margins, presents opportunities for yield optimisation through technology. IT asset disposal is also gaining traction, underpinned by regulatory tailwinds such as the EU’s Right-to-Repair Directive and the broader shift towards circular economy models.
Benelux offers a mix of defensive and growth-oriented opportunities. Nurseries remain highly fragmented, particularly in the Netherlands, where supply shortages create scope for scaled operators to centralise compliance and introduce premium services. Specialist cleaning is the fastest-growing sub-sector in the region, with larger players able to offset wage pressures through ESG-led contract wins. Camping grounds are also drawing investor interest, as the rise of “glamping” enables operators to enhance yields through professionalisation and dynamic pricing.
In Iberia, camping grounds again feature prominently, benefiting from rising hotel prices and extended tourism seasons driven by motorhome travel. Student accommodation is another key theme, with provision levels in Spain and Portugal lagging behind European averages amid record international enrolments. The manufacture of kitchen furniture—still dominated by thousands of small workshops—offers a classic consolidation story, with scope for automation and scale efficiencies.
Germany presents opportunities in highly specialised industrial niches. Technical ceramics, a fragmented market with strong intellectual property foundations, is attracting interest due to its exposure to high-growth end markets such as aerospace and electronics. Specialist cleaning commands significantly higher margins than general cleaning, reflecting its technical complexity and regulatory requirements. Camping grounds are also evolving into a more institutionalised asset class, supported by digital booking systems and dynamic pricing models.
In France, industrial maintenance stands out as a non-discretionary sector linked to ageing machinery, with predictive maintenance technologies offering a route to margin expansion. Technical testing and analysis benefits from high barriers to entry and tightening EU regulations on product safety and ESG reporting, supporting recurring revenues for accredited laboratories. Specialist cleaning, particularly in industrial settings, is outperforming the broader market as stricter environmental criteria favour scaled operators with digital capabilities.
Overall, the report underscores a shift in private equity strategy, where successful buy-and-build execution increasingly depends on operational sophistication, regulatory navigation and the ability to unlock organic growth alongside consolidation.
The full report is available from CIL.
