Sean O’Flynn, Partner & Managing Director and EMEA Leader of M&A and Transaction Advisory at AlixPartners, comments on ONS data on Mergers and Acquisitions involving UK companies

“The ONS data for Q3 2024 reflects the uncertainty that continues to lurk in the M&A landscape, as economic headwinds disrupt the market, but there are still reasons for cautious optimism as we reach the end of 2024. Whilst the total number of transactions fell from 479 in Q2 to 436 in Q3, it's positive to see that international investors remain interested in UK businesses, with a 1.1 billion increase in inward M&A value. 
 
“Mid-market activity continues to be a particular bright spot, with increased deal-making signalling the sector's resilience – as supported by a 30-transaction rise in the number of inward deals compared to Q3 2023. This points to growing appetite among foreign investors eager to capitalise on perceived value in the UK. However, the domestic M&A market saw a significant dip in value from £3.0 billion in Q2 to £2.1 billion in Q3, underscoring the challenges facing homegrown activity amid economic headwinds.
 
“The surge in deal announcements we have seen since the Autumn Budget reflects a reawakening of confidence from outside investors looking to take advantage of what they view to be good deals in the mid-market currently.  With fiscal clarity now established, many businesses and investors who had been waiting on the sidelines are pressing forward.”