Financial services helping to drive UK M&A activity, research shows
Research from mergers and acquisitions (M&A) and debt advisory firm Livingstone Partners has shown that M&A activity targeting companies in the UK increased by 13% in the second quarter of the year, with financial services being one of the main drivers of growth.
The findings showed that the UK continues to lead the way for M&A in Europe, with a total of 355 deals taking place in Q2 2018.
The UK outperformed Germany, the Nordics, India and China, which accounted for 214, 262, 75 and 60 deals respectively. Of the M&A deals in the UK, 163 originated from foreign-owned businesses, with 69 of these being from the US. This was higher than the number of deals from foreign-owned businesses in the first quarter of 2018, which stood at 152.
The research identified the top sectors for M&A activity, with business services leading the way at 140 deals, up by 20 deals on the previous quarter.
The UK’s consulting & business-related services was the best-performing sector of the 30 core sub-sectors included in the study, with 70 deals taking place in the second quarter of the year. Financial services were also among the 30 core sub-sectors, accounting for 32 deals.
Commenting on the research, Livingstone Partner Daniel Domberger stated that despite the increasing threat of trade wars and other political disruptions, the M&A market continues to be strong and deal activity has thus far defied the political uncertainty seen at home and abroad.