London still ‘second most attractive market’ for dealmaking post-Brexit
The UK saw the second highest level of dealmaking between 2018 and 2024, new research has suggested, reflecting London’s status as a key financial hub despite claims its status would be reduced post-Brexit.
Mergers and acquisitions in the UK hit $1.14 trillion in value over six years, coming only second to the US where a total of nearly 300 deals were valued at $1.19 trillion, a new report by international law firm Taylor Wessing and Bayes Business School has said.
The new data suggests that London remains attractive as the UK was seen as the second most sought-after market for cross-border deals.
The report also highlighted that three quarters of dealmakers surveyed were positive about the future of M&A in the UK.
Taylor Wessing’s head of UK corporate, Emma Danks, warned that optimism among most of the 850 dealmakers was “not enough”
“The market’s resilience in response to the latest US tariffs highlights how dealmakers are adapting – even as geopolitical shifts and supply chain disruption reshape the playing field,” Danks said.
“Turning confidence into returns requires discipline, alignment, and deal-specific integration planning. Those who get it right will lead the next wave of global M&A.
“Without a clear strategy, deals can quickly be put at risk,” she added.
Technology and energy were seen as two key areas in the economy which could see the highest level of dealmaking in the next five years, according to the report titled ‘Dealonomics’.
Three in five of those surveyed also said AI could help improve checks on companies and balance sheets, with more senior decision-makers taking a bolder view on the usage of new technology.
LSEG data earlier this year said US dealmaking had suffered its worst start to the year due to trade policy uncertainty.
But dealmakers were most confident about agreements being struck in the US over the next 12 months.
Professor Scott Moeller, who specialises in M&A finances at Bayes, said a recent slowdown in dealmaking served to “build up dry powder” for future buyers.
“When the dam breaks and the deal flow begins to pick up again, we can expect to see a significant acceleration as companies look to put these overflowing war chests to good use.”