M&A: UK Deal-Making In 2025 – A Year In Review
The recent PitchBook M&A report on 2025 deal-making contained a strong message: 2025 was the year dealmaking decided it didn’t care about the gloom. Globally, M&A hit 50,810 deals and nearly $5tn of value, with deal count up 12.4% YoY and value up 37% – and the second half did the heavy lifting after a wobbly Q2.
UK Focus: Regulators blink (and that matters)
For the UK, the report’s most revealing datapoint isn’t a volume chart – it’s the stance of the watchdog. The Competition and Markets Authority cleared all 36 mergers it examined in 2025 with no prohibitions, the first time that’s happened since 2017, after political pressure and a change at the top. That’s a meaningful shift in the risk calculus for boards and sponsors: fewer “deal-killing” tail risks, more confidence to sign.
There’s also a quieter UK tell in financial services: JAB Insurance buying Utmost Life & Pensions for $6.6bn – a reminder that the UK remains a magnet for long-duration assets when confidence returns.
Europe: volume leadership, PE muscle, and a valuation discount
Europe, more broadly, had a “standout” 2025: nearly 21,000 transactions and about $1.3tn in value – H2 value up 31.4% vs H1 as conditions stabilised. Europe has now clocked three straight years of higher M&A volumes than North America.
Two drivers dominate. First, macro: eurozone inflation back to target and the European Central Bank signalling the easing cycle may be nearer its end—i.e., financing feels less hostile. Second, private equity: PE’s share of European M&A value hit 50.7% (up from 32.1% a decade ago), and sponsors are increasingly willing to pay up for scale and platforms.
Valuations tell you Europe is still “cheaper”: European median EV/EBITDA ~9.6x versus US ~11.2x, and EV/revenue stuck around 1.4x for three years – discounted, but no longer distressed.
Takeaway point: the UK’s softer clearance posture plus Europe’s valuation gap is an invitation to transact, especially for sponsors with dry powder, provided geopolitics and tariffs don’t re-break the confidence that 2025 rather noisily rebuilt.
2026 may yet prove to be a stand-out year for company exits. If you are considering how to maximise your exit value, why not call us for a private discussion?
Tags: 2025, Deal-Making, EBITDA, EV, M&A, Review, UK
