Is the UK one of the most attractive locations for mergers and acquisitions?

The UK has long been a popular market for mergers and acquisitions (M&A) but a recent study by the Mergers and Acquisitions Research Centre (MARC) at Bayes Business School has found that it is now the top location in Europe for domestic and overseas investment.

According to the latest annual M&A ranking, which compared the attractiveness to investors and existing deal activity among 148 nations, the UK came top in Europe thanks to several key factors.

The annual report provides insight into the opportunities and challenges facing countries and how they affect transactions and investments.

Factors such as environmental, social and governance (ESG) considerations are becoming increasingly important it would seem, according to the study, along with strong national infrastructure.

The latest findings found that:

  • The UK had climbed six places to be ranked third globally for M&A, just behind the United States and Singapore.
  • This places the UK ahead of the Netherlands and Germany, making it the most attractive location in Europe for investors.
  • Other top climbers internationally include:

– Fiji (up 12 places to 46th)

– Brunei (up 11 places to 30th)

– Australia (up 10 places to 11th)

– Mauritius (up 10 places to 50th)

  • Among the 20 leading countries worldwide, ESG concerns among investors were the biggest drivers of change, with the top three countries winning out thanks to their national infrastructure and asset quality.

This latest study is the first of its kind since the shake-up of the pandemic and showed how it had affected countries, including the socio-economic considerations that investors must make when making decisions.

For example, some nations experiencing higher unemployment or continued restrictions dropped in the rankings.

If you are interested in UK M&A or would like legal advice on any transactions, please speak to our team today.