M&A activity to continue to rise, says corporate lawyer
The latest financial services analysis from EY, shows that mergers and acquisitions (M&A) activity increased considerably in 2024, and the levels are set to rise further in 2025, according to corporate lawyer Ed Foulkes.
The figures, based on the UK financial services sector, marked a 26% year-on-year increase in deal volumes and reached the highest annual level since 2012. The report also showed that wealth and asset management firms were responsible for the most activity with growth in both the number and value of transactions.
Within the wealth and asset management sector, the number of deals increased from 107 in 2023 to 122 in 2024, with total publicly disclosed deal value rising from £2.1bn in 2023 to £9.3bn in 2024.
Ed Foulkes, a partner at national law firm Clarke Willmott LLP, said the figures signal robust growth and transformation in the market and that the surge was particularly pronounced from 2023 to 2024, marking a pivotal period for dealmaking.
“The data indicates a remarkable pick-up in M&A activity,” said Foulkes. “That wealth and asset management firms led the charge is no surprise, and this is reflective of the transactions market generally in that period.”
“Notably, the introduction and enforcement of Consumer Duty regulations has been a key driver for deals involving smaller targets.”
Described as “one of the most far-reaching regulations” in decades, the new requirements are aimed at reshaping financial services, focusing on fair, transparent, and supportive practices to deliver better outcomes for clients.
Foulkes also points out that the uptick reflects not only increased confidence in the market but also a strategic move for companies to stay competitive. “There is still fierce competition for high-quality assets although there is also a recognition that some buyers had overpaid for the best businesses in the past. We have also seen increased consolidation amongst former consolidators.”
Clarke Willmott has a specialist team of mergers and acquisitions solicitors advising public and private companies, institutional investors and private individuals.
Discussing what he thinks the reasons for the latest figures are Ed Foulkes comments: “There remains a significant amount of funding available from multiple sources so this is helping deal numbers and first time buyers to enter the market.”
“Stakeholders are not merely focusing on financial returns but also on sustainability, resilience, and long-term goals.”
“At Clarke Willmott we’ve found that our corporate teams across our offices remain very active and our deal numbers and volume of work is currently strong.”
“I’d anticipate the number of deals, as well as the value of transactions, to continue to rise into 2025. Whilst the wider economic outlook remains uncertain, we believe that the sector has proven resilient and that firms will want to maintain their growth plans.”
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