UK M&A market hits eight-year high in 2015

Inward cross-border deals show particularly strong growth in strongest year since 2007.

The number of M&A deals completed rose 10.3% in 2015, leading to the highest deal activity since 2007, according to research by Experian.

Overall 6,532 deals involving UK companies were completed across the 12-month period. The total value of these deals reached £433bn, the highest recorded since the £576bn seen in 2000.

Mega-deals (with a valuation of £1bn or more) saw a sharp increase of 21.7%, with 56 deals completed.

Additionally, investments into UK companies from overseas increased by 14.7% year-on-year in deal numbers and by almost £100 billion in value.

Predictably, the Greater London region has seen the highest level of deal activity. A total of 2,576 deals involving companies in the area were announced.

>See also: Potsdamer Platz secured by British property company

The East of England saw a deal value increase of 253.8% – up to £28.59bn.

Experian head of corpfin research Jane Turner confirmed that the UK’s M&A market “returned to pre-recession levels in 2015, with substantial increases in deal numbers and values”.

“It’s encouraging to see dealmakers are looking at smaller companies to make investments so SMEs can get the expertise and funding they need to help them grow,” she continued.

“Overseas investors have also shown confidence in the UK economy by investing in greater numbers, but both domestic and international dealmakers will now be conducting thorough research as they hunt for businesses ripe for investment in 2016.”

Further reading: Beechbrook Capital closes £100m fund

Praseeda Nair

Praseeda Nair

Praseeda was Editor for GrowthBusiness.co.uk from 2016 to 2018.

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