Mixed picture for UK mergers and acquisitions– Where do the opportunities lie?

Mergers and Acquisitions (M&A) are a core part of business growth and resilience.

Done well, the acquiring business benefits from a new market and the other company gets access to additional resources and support.

Government data has shown changes in the value of UK M&As, so it is necessary to understand how opportunities may manifest in the future.


How are mergers and acquisitions changing in the UK?


The Office for National Statistics (ONS) recently published data concerning M&As and the picture is mixed.

Compared to the previous quarter, the first quarter of 2026 saw a notable fall in the number of M&As, dropping from 495 to 352.

Inward M&As, those deals wherein foreign businesses acquired UK businesses, saw an £18.8 billion reduction in value, as it was only £14.2 billion compared to the previous quarter’s £33 billion.

Domestic M&As, those conducted between UK businesses, took a slightly smaller hit of £0.4 billion, resulting in a value of only £1.5 billion compared to the previous £1.9 billion.

Outward M&As bucked the trend as UK businesses acquiring overseas companies saw a £1.7 billion increase in value, taking the £3 billion generated in the last quarter to £4.7 billion.


What opportunities are there for mergers and acquisitions in the UK?


For UK businesses unsure about expanding overseas, the data might make the case that it is a worthwhile endeavour.

Using M&As to expand internationally gives UK businesses access to people who understand the market, language and culture needed to succeed in a new territory.

This will involve engaging with the existing team and learning from their lived experiences.

For businesses focused only on UK growth, M&As remain a viable expansion strategy even as value fluctuates.

Before pursuing an acquisition or merger, seeking professional corporate finance advice can help you assess potential opportunities, value the target business and structure the transaction to support your long-term objectives.

It is worth remembering that the value of a business at the point where an M&A completes is not necessarily indicative of its long-term value, as your efforts could be the key to greater future growth once you have a place in that market. A well-planned acquisition should form part of a wider business strategy, and growth planning services can help businesses maximise the long-term value of expansion opportunities.


Looking to expand your business?


Our team can help you understand all aspects of an M&A to ensure you are best positioned to find sustainable growth for your business and then support you through the process.

If you want to make the most of the opportunities mergers and acquisitions present, get in touch with our team.

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