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.
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.
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.