- Investors buying into manufacturing companies have paid on average a 69% premium to invest in companies that are sustainable, research by Price Bailey shows
- Findings show a reduction in risk signals for sustainable businesses
- Risk signals for liquidation and insolvency just 4% for companies pursuing environmental goals
- Analyses covered 2,570 funding deals, over 25 years
LONDON, May 14, 2025 /PRNewswire/ -- Manufacturing businesses who employ environmentally friendly practices receive, on average, a 69% higher pre-money valuation than those without, according to research by Price Bailey, a 'Top 40' firm of accountants.
The research obtained by Price Bailey through data insights provider Beauhurst, analysed the pre-money valuations of manufacturing businesses with and without five environmental signals. These signals are attributed to companies who are actively pursuing environmental goals.*
According to the data, companies within the manufacturing industry who employed some environmental considerations achieved, on average, a pre-money valuation of £27.5m. Those without, received one of £13.4m - representing a multi-million-pound divide.
Price Bailey also highlighted that across all sectors analysed, companies pursuing environmental goals had lower risk signals, indicating a reduced risk of companies becoming inactive, with the risk signal for liquidation and insolvency just 4%.
Chand Chudasama, Partner and Strategic Corporate Finance expert at Price Bailey, comments:"Despite recent Atlantic headwinds, the last 25 years shows that sustainability is an essential part of a business strategy for manufacturers who wish to run a premium business model
"The definition of sustainability is encouragingly broader than environmentally friendly but the acquisition of Wild Deodorant by Unilever exemplifies the premium paid for these business models and brands. Wild quickly gained traction among consumers, becoming the UK's number one natural deodorant brand and just six years later achieved a sale value of approximately £230 million.
"Not only this, but there are real cost savings available to businesses who engage in more sustainable business activities, as well as tax incentives and alternative funding streams. These factors support growth and lower the risks to investors which we are seeing feed into investor interest, bolstering valuations."
For more information visit the Price Bailey website here.
*By looking at a company's activities such as descriptions, sectors, and buzzwords, Beauhurst have identified whether a company operates in environmental spaces, such as 'Clean & Renewable Energy', 'Green Transport', 'Green Infrastructure & Building', 'Sustainable Agriculture & Food Production' or have achieved any 'Environmental Accolades'.
About Price Bailey
Price Bailey is a top 40 accountancy practice specialising in providing accountancy, tax and business advice to enable the growth of regional, national and international businesses. In addition to traditional accounting services, the firm has a range of specialists in many areas which combine to provide a complete, integrated business offering. These include tax consultancy, corporate finance, strategic planning, insolvency & recovery, and employment law.
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