Despite expectations of a global M&A surge following the inauguration of the new US administration, the UK market began 2025 with a more measured pace.
Transaction volume declined 24% year-on-year to 1,306 – the lowest since mid-2020 – while aggregate deal value fell 40% to £40bn. However, this figure was underpinned by a series of high-profile megadeals and sustained overseas interest, signalling continued investor confidence. Inward investment rose by 11%, led by global bidders such as KKR, Stonepeak, Brookfield, and Meiji Yasuda, driving transformative acquisitions across real estate, healthcare, and energy. The private equity landscape remained active, with a 17% increase in buy-out activity and a 5% rise in PE-backed deal value to £11.5bn, even as early-stage funding moderated.
Sectorally, technology, media, and telecoms (TMT) continued to lead the market, driven by rapid advancements in AI and digital transformation – particularly in software development. The mining and health sectors also posted year-on-year growth, while real estate saw a 340% surge in value, bolstered by landmark transactions such as the Ministry of Defence’s £6bn acquisition of military housing. Overall, the UK remains an attractive destination for strategic and financial investors, with high-value activity laying the groundwork for renewed momentum in the mid-market segment in the months ahead.
Mergers and Acquisitions review – Q1 2025
Archive
Our previous Mergers and Acquisitions reviews can be viewed below:
- FY 2024 M&A review
- H3 2024 M&A review
- H1 2024 M&A review
- Q1 2024 M&A review
- FY 2023 M&A review
- YTD 2023 M&A review
- H1 2023 M&A review
- FY 2022 M&A review
- Q3 2022 M&A review
- H1 2022 M&A review
- Q1 2022 M&A review
- FY 2021 M&A review
- Q3 2021 M&A review
- H1 2021 M&A review
- FY 2020 M&A review
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