The number of mergers and acquisitions in the UK mid-market has dropped to the lowest level since 1995, according to business advisory firm Grant Thornton.

The number of mergers and acquisitions (M&A) in the UK mid-market has dropped to the lowest level since 1995, according to business advisory firm Grant Thornton.

Only 35 M&A deals involving UK targets valued between £50 million and £250 million were recorded in the first half of 2009, compared with 60 in the same period last year – a fall of 42 per cent.

David Brooks, head of M&A at Grant Thornton, says, ‘It looks like the credit crunch has finally caught up with the mid-market, which had been more resilient to the crisis than top tier deals in terms of deal volumes.’

Brooks adds that potential bidders are shying away from cyclical industries, fearing a ‘double-dip recession’.

Economic uncertainty is hitting deals of all sizes, with 420 transactions involving British targets completed in the second quarter of the year, the lowest quarterly deal volume since 1993.