More Mergers and Acquisitions coming in 2025 as signs of positive economic growth appear

Chantal Van Stipriaan, who has joined the firm as an M&A and Corporate Tax Partner, said:

The UK M&A market in 2025 is looking optimistic, as signs of positive economic growth start to appear, with more activity expected than in the latter half of 2024.

Investors’ confidence is being bolstered by GDP growth in the first quarter of 2025 and the Bank of England lowering the base interest rates from 4.5% to 4.25% and potentially to 3.75% by the end of 2025. More companies are considering strategic mergers and acquisitions now it costs less to borrow.

Private Equity have significant amounts of undisposed capital available for deployment in the UK and Europe, and the UK Government is seeking to redevelop relationships with Europe. These factors are the right ingredients to increase deal activity in the UK.

There is more M&A activity in the Financial Services sectors, Healthcare and Technology sectors, particularly in AI, as both corporate and private equity are eager to make deals, whether on the sell- or buy-side.

She added:

Clients are reporting increased activity in the sell side and companies are exploring the possibility of selling in the next 1-3 years. However, increased market volatility and lower valuations could slow down M&A activity in the short term, but in the long term there are plenty of reasons for optimism.

Would you like to know more?

If you would like to discuss any of the above, please speak to your usual Blick Rothenberg contact or Chantal Van Stipriaan using the form below.