M&A Market Continues Growth, With High Deal Success Rates

The M&A market in the United Kingdom and Ireland maintained its upward trajectory in the second half of 2024, continuing the growth observed earlier in the year. The number of sell-side transactions increased by 4%, while buy-side transactions grew by 8%, reinforcing the resilience of the mid-market. The market also saw a further rise in average transaction values, indicating sustained investor confidence despite broader economic fluctuations.

These findings stem from the latest UK&I M&A Monitor, a biannual study conducted by Dealsuite, Europe’s leading platform for mid-market M&A transactions. The research, based on insights from 431 M&A advisory firms active in the UK&I, offers an in-depth look at transaction trends, deal structures, and market confidence.

UK&I M&A Market Outperforms in Deal Success Rates
The success rate of M&A transactions remains a key indicator of market strength. On average, 71% of sell-side assignments resulted in a closed deal, marking a high completion rate compared to neighboring regions. In the DACH region, the success rate stood at 62%, while in Central and Eastern Europe (CEE), it was 59%. This higher success rate in the UK&I market reflects a well-established transaction process and strong buyer appetite.

Floyd Plettenberg, CEO of Dealsuite, confirms that these figures reflect a long-term shift in M&A dynamics: “Twenty years ago, 70% of closed deals failed to meet expectations. Today, 70% are considered successful. This shift shows how M&A has evolved into a more strategic tool for growth and innovation, driven by a more mature and professionalised M&A market. At Dealsuite, we see how better market access and transparency help buyers and sellers make informed decisions, leading to more and better deals.”

Investor Confidence Drives Higher Valuations
Investor confidence in the UK&I mid-market remains strong, with rising deal values and increased competition for quality businesses. The average sale price relative to earnings (EBITDA multiple) rose to 5.35 in H2-2024, up from 5.2 in the previous period, reflecting buyers’ willingness to pay a premium for well-performing companies. Sectors like IT Services (7.6 to 7.9) and Industrial & Manufacturing (4.8 to 5.1) saw notable increases. With sustained investor interest and a competitive M&A landscape, sellers continue to benefit from favorable market conditions.

Positive outlook for 2025
The outlook for the UK&I M&A mid-market remains positive for 2025. A strong deal pipeline, combined with improved financing conditions and sustained investor confidence are expected to drive transaction growth, with 77% of respondents anticipating further expansion in the coming months.