Following a subdued opening to 2023 for UK M&A, reduced levels of corporate deal making persisted into the second half of the year, as uncertainties around interest rates and company valuations – along with continuing macro and geopolitical concerns – all weighed on the volume of announced transactions.
We recorded diminished activity across most of our key metrics year on year, with the total number of UK transactions, at 6,426, representing a decline of 12% from the 7,304 deals announced in 2022.
That said, there were some areas of growth, as deal makers took an increasingly creative and pragmatic approach to getting transactions over the line; we recorded an upturn in minority stake transactions, demergers and joint ventures along with – still – consistently strong buy-out activity.
The outlook for 2024 is cautiously optimistic. M&A remains a strategic priority for businesses, private equity dry powder is still at historically high levels and there is a healthy pipeline of transactions that were postponed last year due to market volatility. With the sense that the rise in inflation and interest rates may well have peaked, deal makers are increasingly able to take a longer-term view of the market and feel more comfortable in pushing forward with major investment decisions – raising hopes for an upturn in deal activity in the year to come.
Mergers and Acquisitions review – FY 2023
Our previous Mergers and Acquisitions reviews can be viewed below:
- 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
To ensure that your company’s involvement in both current and historic deals is accurately represented, please get in touch for further information.