Market Insights Financial Corporate Finance

Mergers and Acquisitions - United Kingdom

United Kingdom

The transaction value in the Mergers and Acquisitions market is projected to reach US$191.50bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -7.52% resulting in a projected total amount of US$177.10bn by 2025.
The average transaction value in the Mergers and Acquisitions market amounts to US$192.50m in 2024.
From a global comparison perspective, it is shown that the highest transaction value is reached in the United States (US$1,359.00bn in 2024).

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Analyst Opinion

The Mergers and Acquisitions market in United Kingdom is currently experiencing a significant uptrend in activity.

Customer preferences: Companies in the United Kingdom are increasingly looking to M&A deals as a strategic tool to expand their market presence, acquire new technologies, and diversify their product offerings. This trend is driven by the desire to stay competitive in a rapidly evolving business landscape and capitalize on synergies that can drive growth and innovation.

Trends in the market: One notable trend in the UK M&A market is the rise of cross-border transactions, with both inbound and outbound deals on the rise. Companies are seeking opportunities beyond domestic borders to access new markets, talent, and resources. Additionally, there is a growing interest in acquisitions within the technology and healthcare sectors, reflecting the increasing importance of digital transformation and healthcare innovation in today's economy.

Local special circumstances: The regulatory environment in the United Kingdom plays a significant role in shaping the M&A landscape. With Brexit uncertainty looming, companies are navigating new trade dynamics and potential regulatory changes that could impact cross-border deals. This uncertainty has led to a sense of urgency among businesses to secure strategic partnerships and acquisitions to mitigate risks and seize growth opportunities.

Underlying macroeconomic factors: The overall economic stability and favorable financing conditions in the UK are driving M&A activity. Low interest rates and access to capital are making it easier for companies to fund acquisitions and pursue growth strategies. Additionally, the resilience of the UK economy and the strength of key industries such as finance, technology, and healthcare are attracting both domestic and foreign investors looking to capitalize on the country's strong market fundamentals.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.