Is the M&A market heating up?

2025’s improvement continues

Last financial year, to end of March 2026, our M&A deal volumes were 20% up on the previous year with most deals in the £5m to £10m range.

From the turn of the year, we have seen the average deal value increase with more deals £20m+ and, increasingly, £40m+; so what is happening?

Equity Capital Markets

The big moves have been in the US, with concern increasing over AI values; despite this, large listings are pending for Anthropic, Space X, and others.  London has seen slower growth, but last year began to move and that trend is continuing. For DMH Stallard, that means often tech business or minerals and mining businesses reversing into listed vehicles on Aim or considering IPOs.

An active ECM sector brings international investors to the UK and is generally a harbinger of increased deal activity across the market.

Growth is hard to achieve

With organic growth challenged and profitability from core businesses squeezed, corporate businesses with access to capital are looking to invest and grow rather than play it safe.  This year, Scandinavian businesses have been the biggest investors in UK companies we have seen in a noticeable shift.

US is a less reliable partner

We have not seen strong US demand, but plenty of European and Middle East interest.  It seems other global regions are looking to secure their positions with strategic acquisitions and the UK remains popular.

Succession remains a challenge

We see more businesses now with owners in their 60s and 70s.  With tax pressures mounting and business assets no longer safe from IHT, more owners are looking again at exit options.

Vendor diligence

As values increase, more sellers are considering vendor diligence packs so their businesses are ready for market, can transact quickly, and create investor competition.

What could go wrong?

Global instability has the potential to slow confidence, but the need for natural resources is not slowing and the softening of some banking (capital adequacy) restrictions should increase debt availability.  For businesses looking to unlock value, it is a good time to test the market, but preparation and a clear strategy are critical.

For further information or an initial discussion with our expert Corporate lawyers about growth through acquisition, please get in touch by email or call +44(0)3333 231580.