Mergers and acquisitions in the UK financial services industry has reached a 10-year volume high, according to analysis by EY.
Some 160 deals were made in the first half of 2023, a 16% rise from the same period in 2022.
In the UK wealth and asset management industry, the number of deals rose to 67 in H1 2023 from 55 in the first half of 2022.
However, total disclosed deal value for the period fell to £4.7bn in the first half of 2023 from £11.6bn ($15bn, €13.6bn) in the same period the year before.
Tom Groom, UK financial services strategy and transactions leader at EY, said: “The macroeconomic environment this year has undoubtedly impacted deal value, with a continued reduction in private equity involvement in particular.
“However, the key drivers of M&A – being growth, innovation and synergies between businesses – remain, and as firms develop approaches to deliver M&A in this higher rate environment, we anticipate a return to higher deal values.”
This comes after a recent report from M&A consultancy firm Gunner & Co found business values for multi-adviser firms are experiencing a steady rise, defying challenges posed by high inflation and increased capital costs.
