Latest UK M&A Statistics for Q1 2023
The UK Office for National Statistics have just released their latest statistics for Q1 2023. Below is the update on Mergers and Acquisitions (M&A) involving UK companies for Q1 2023, during the period January to March 2023.
Please note that these include only transactions that result in a change of ultimate control of the target company and have a value of £1M or more.
*N.B. These numbers are provisional and may be subject to upward revisions until Q1 2024.
Headline Statistics for UK M&A Q1 2023
Provisional estimates suggest lower M&A activity at the start of 2023, following general stability across 2022.
During Q1 2023, the total number of M&A transactions was 141 transactions in January 2023, 100 in February 2023 and 115 during March 2023, compared with over 150 each month throughout 2022.
Value of inward M&A in Q1 2023 was £12.7Bn, £6.9Bn higher than the previous quarter (upwardly revised to £5.8Bn), but £4.1Bn lower than in the same period the previous year (£16.8Bn).
Total value of outward M&A in Q1 2023 was £2.9Bn, £7.2Bn lower than in Q4 2022 (£10.1Bn) and £0.2Bn lower than in the same period the previous year (£3.1 billion).
Value of domestic M&A during Q1 2023 was £1.8Bn, £2.1Bn lower than Q2022 (upwardly revised to £3.9Bn) and £2.6Bn lower than in the same period the previous year (£4.4 billion).
During 2022 there were 2,099 completed M&A transactions worth £97.4Bn, notably lower than in 2021 (2,298 deals worth £153.0Bn).
Monthly UK M&A Q1 2023
Total monthly M&A activity was affected by COVID-19 in 2020, but it strengthened in 2021. Although monthly cross-border M&A activity since February 2022 may be indirectly affected by the ongoing economic uncertainty arising from the Russian invasion of Ukraine, it has remained relatively consistent.
Since November 2022, both monthly domestic and cross-border M&A have declined, see *N.B. above.
Total monthly inward M&A was 64 acquisitions during January, falling to 39 in February and then rising slightly to 42 in March 2023.
Number of monthly outward M&A completed transactions was 22 in January, 15 in February and 20 in March 2023.
Domestic monthly M&A saw relatively stable numbers between January (55) and March 2023 (53).
The Bank of England’s Agents’ summary of business conditions for Q1 2023 reported that
Contacts that specialise M&A said “activity continued to decline”. The same report stated that “investment intentions improved as uncertainty about the economic outlook diminished slightly, and companies sought to improve efficiency. Small and medium-sized firms were generally able to access credit for working capital or equipment purchase, but conditions were still reported to be tight for activities such as property investment or corporate acquisitions.
The Bank of England
Inward UK M&A Q1 2023
In Q1 2023, total value of inward M&Arose to £12.7Bn, an increase of £6.9Bn compared with the previous quarter (£5.8Bn), but £4.1Bn lower than in the same period the previous year (£16.8Bn).
One notable inward acquisition in Q1 2023 was Brookfield Corporation of Canada which acquired Homeserve Plc of the UK.
Value Inward UK M&A Q1 2023
Value of inward M&A transactions rose to £12.7Bn in Q1 2023, following a low figure in Q4 2022.
Value of inward M&A from Q1 2019 & Q1 2023 ranged from £2.8Bn to £32.9Bn.
Number Inward UK M&A Q1 2023
There were 145 completed inward M&A transactions in Q1 2023, a decrease of 40 on the previous quarter (185) and 75 fewer than Q1 2022 (220).
Outward UK M&A Q1 2023
Value of outward M&A in Q1 2023 was £2.9Bn, £7.2Bn lower than Q4 2022 (£10.1Bn) and £0.2Bn lower than Q1 2022 (£3.1Bn).
One notable outward M&A completing in Q1 2023 was the acquisition of Coca-Cola Beverages Vietnam Limited of Singapore by John Swire & Sons Ltd of the UK.
Value Outward UK M&A Q1 2023
Value of outward M&A fell sharply in Q1 2023 following two stronger quarters.
Value of outward M&A between Q1 2019 & Q1 2023 ranged from £1.7 bBn to £32.1Bn.
Number Outward UK M&A Q1 2023
There were 57 outward acquisitions Q1 2023, 6 fewer than in Q4 2022 (63) and 37 fewer than in Q1 2022 (94).
Number of outward M&A transactions fell slightly between Q4 2022 & Q1 2023.
Total number of outward M&A between Q1 2019 & Q1 2023 ranged from 30 to 94 transactions.
Domestic UK M&A Q1 2023
Value of domestic M&A in Q1 2023 was £1.8Bn, a £2.1Bn decrease compared with Q4 2022 (£3.9Bn) and £2.6Bn less than Q1 2022 (£4.4Bn).
Value Domestic UK M&A Q1 2023
Value of quarterly domestic M&A transactions fell in Q1 2023 from a previous high value recorded in Q4 2022.
Value of domestic M&A between Q1 2019 & Q1 2023 ranged from £0.9Bn to £17.9Bn.
Number Domestic UK M&A Q1 2023
There were 154 domestic M&A transactions in Q1 2023, 105 fewer than in Q4 2022 (259) and 76 fewer than in Q1 2022 (230).
Number of quarterly domestic M&A transactions remained broadly stable in Q2-Q4 2022 before falling in Q1 2023.
Total number of domestic M&A between Q1 2019 & Q1 2023 ranged from 154 to 335 transactions.
The above data for M&A Statistics for Q1 2023 was extracted from the Office of National Statistics; full details here.
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Tags: M&A Statistics, M&A Stats, Office for National Statistics, Q1 2023, UK
