Market review – How is M&A performing in the UK in 2025
Lubbock Fine, 10 October 2025
Lubbock Fine, 10 October 2025
The UK mergers and acquisitions (M&A) market has remained fairly resilient in 2025, even as deal volumes and values adjust following a year of record deals in 2024.
Although the nation has undergone a period of political and financial uncertainty, the message to business owners and shareholders considering a sale or acquisition is far from negative, with lots of potential opportunities in the market.
Although the deals may be smaller and more measured, there continues to be domestic and international excitement about the availability of transactions in the market.
According to Experian’s MarketIQ data, the number of transactions in Q2 2025 (the period with the latest available data) held steady with 1,514 transactions recorded, a slight rise from the first quarter.
Overall, in H1, the UK experienced 3,003 deals, which was c.20% lower than the same period the year before.
The value of the deals has also fallen in comparison to H1 2024 falling from £146 billion to £71 billion. This is a reflection of the swift decline in “mega deals” valued more than £1 billion.
In 2024 there were 37 such deals during the first half of the year, whereas 2025 H1 has only seen 16 comparable deals.
Whilst these large deals have declined, the SME segment has seen considerable activity, with sub-£100 million deals accounting for nearly 88 per cent of disclosed transactions.
The volumes of deals have varied considerably from one sector to the next. Here is a summary by sector for the first six months of 2025:
Private equity also remained a key player, accounting for 740 deals worth £20 billion although activity is down on last year.
Management buy-outs have proven to be relatively stable, while growth capital deals have slowed.
The UK continues to attract inbound investment particularly from US and European buyers, while UK firms remain acquisitive in markets, such as the US, Ireland, Australia and the Netherlands.
Although the decline in headline values may be concerning, most experts agree that this is far from a downturn, but rather a return to normal from the excitement of the previous year.
Interest rates are easing, stock markets are experiencing record highs (despite the occasional volatility caused by conflict and talk of tariffs elsewhere in the world) and liquidity is generally considered to be good.
Nevertheless, there is still a sense of uncertainty from the ongoing disruption caused by geopolitical conflict and an evolving regulatory landscape.
If you’re thinking about selling your business, now could be the right time. Demand remains strong in sectors like healthcare, technology and manufacturing and buyers are still highly active in the SME space.
For those looking to buy, competition is calmer than last year, valuations are more realistic and international interest continues to support the market.
With activity expected to pick up in late 2025 and into 2026, now is the moment to get prepared.
For tailored advice on how to position yourself to make the most of opportunities that may lay ahead, please get in touch with Partner, Rahid Rashid (rahidrashid@lubbockfine.co.uk).
