Industry overview

Over the past five years, the UK M&A market has demonstrated continued growth and considerable resilience, with over 38,000 transactions involving UK targets worth almost £1.5 trillion taking place. Last year alone, the value of business disposals exceeded £350bn. Between 2018 and 2022, there was an average of over 8,000 transactions per year involving UK targets, worth over £300bn per annum. Despite disruptions across the country during COVID-19, the M&A industry showcased its robust nature, with a lull in activity during the pandemic bouncing back through an increase of almost 18% in transaction volumes in 2021. The demand for business acquisitions is not expected to slow down over the coming years, as trade buyers and investors across the UK look to diversify and consolidate. Multiple factors have been identified which are encouraging M&A activity, including consolidation; ESG and sustainability targets; the integration of disruptive technologies; increasing private equity cash reserves; and growing supply chains.