Mergers and Acquisitions in the UK

M&A in the United Kingdom

The UK, London, is considered as one of the leading financial centers in Europe. Within the European Union the role played by the UK is significant. The UK attracts lots of foreign investors by m&a deals or joint ventures as their language is spoken worldwide.

M&A developments

Foreign investors from non European countries often choose the UK as a starting point to get a footprint in Europe. Mostly this is done by an M&A deal and can be the starting point for a buy and build strategy in other European countries. Given the market in the United Kingdom is fairly liberal we expect M&A activity to stay at a high level over the next years.

About the United Kingdom

The United Kingdom has high standards of living but income inequality is still apparent. The government is challenging the targets to reduce poverty. Although the UK has a strong democratic system and an effective governance the public’s perception is different. Governance indicators illustrate the UK being one of the most successful countries in terms of the application of rule of law, control of corruption, government effectiveness and regulatory quality. As a permanent member of the UN, G8 and NATO, the UK is a global player in global politics. Decades of economic growth from the industrial sector and later the services sector assured its political might which is backed up by the establishment as a global business hub and economic power. M&A activity and a good Corporate Finance structure have contributed to this economic growth.

Doing business in the UK

In 2010 the UK has maintained its fifth position in the best country in the world to do business according to the Doing Business indicators. (A publication of the World Bank). The United Kingdom is the second largest economy in the European Union and has a favorable investment climate (also M&A) and a good infrastructure for Corporate Finance activity. The economic performance strongly depends on the transportation infrastructure and provides a solid base for M&A. With 9 ports, 471 airports, a network of roads, rails, waterways and the increasing investment in transportation by the government the UK has an adequate transportation infrastructure. The Cross rail project will be beneficial for the economy and infrastructure. The UK is facing continuing investment (M&A) from abroad and ranked second globally for inward foreign investment according to an UNCTAD investment report. The last years foreign companies made significant investments by M&A deals and joint ventures. The depreciation of the Pound Sterling can be seen as a future prospect. The creation of the single European market is expected to be beneficial for the UK and will boost M&A and Corporate Finance activity. Increasing unemployment is a serious concern for the upcoming years. The budget deficit is challenging and future risks can be found in the slowdown of lending programs of banks.

The UK’s innovation performance is above the average in Europe. In the aircraft industry the UK is the second largest globally, the largest is the United States. Some obstacles can be found in the government’s policy in technology sectors by liberal policies in niche sectors and strict regulatory policies on indigenous innovations. A recent study pointed out that the United Kingdom ranks very well on scientific expertise which is often a reason for M&A (acquisitions). The intellectual property laws are very effective. As R&D and IT is essential for the economic growth of an economy the UK also has problems with the availability in skilled employees. The scope for new industries like nanotechnology, space research and space tourism, and alternative energies are supported by the government by a number of incentives which makes investing (M&A) attractive. Outsourcing of R&D can improve the focus on core areas especially in pharmaceuticals.

Due to mergers and disclosures the number of banks incorporated in the UK declined. London is a major center for international banking and locates the majority of foreign banks in the UK.  The services sector is the major contributor to the British GPD with 79.4%. The sector is dominated by financial services (banking and insurance), education is also a good contributor and the UK is historically attracting students from all over the world to learn about topics like mergers and acquisitions (M&A) and Corporate Finance. In the last years the GPD contribution of the industrial sector has declined to 19.8%. Main exports are fuels, chemicals, manufactured goods, food and beverages due to globally well recognized brands.

M&A Opportunities in the United Kingdom

Becoming the best environment for E-commerce in the world is one of the targets of the government. Pharmaceuticals is also an opportunity sector with 10% of the global R&D expenditure and 7% of the worlds revenue. The numbers of subscribers to broadband internet connections are still rising. The telecommunication network in the UK can be considered as one of the most advanced in the world, although the usage keep rising there is a pressure on the prices due to competition. These are also the areas in which we see M&A opportunities arising in the UK. For more information about IT follow M&A in information technology

 M&A Advisory

The M&A consultants of Corporate Finance in Europe know the UK inside out and have a track record on cross border M&A. We speak your language and know your industry. Corporate Finance in Europe’s M&A advisors have assisted in selling and buying companies valued between 3M and 100M Euro. The businesses sold in the British market have 20 to 200 or more employees and revenues ranging from 2M to 100M Euro. Check our teams knowledge and competences in m&a advisory united kingdom

Business cases

Being an m&a advisor in the Corporate Finance in Europe network means having experience in the UK and knowing your industry . From some of our closed deals we have made a specific description . On the British market we have selected the following companies that were sold;

British Cross Border M&A Deals

Corporate Finance in Europe is constantly monitoring the British M&A market and speaking to Corporate heads at large buyers and sellers. To sell or buy a business successfully means being aware of the requirements and demands by the current market. On recent deals we can give you some important comments. Learn more and follow Recent M&A deals in the UK

We are happy to be at your service. If you have serious mergers and acquisitions plans in the United Kingdom we invite you to contact us by email or phone.