The number of mergers & acquisitions (M&A) among UK wealth and asset managers totalled 122 in 2024, up from 107 in 2023, EY’s latest figures have revealed.

The total publicly disclosed transaction value also rose during the year, from £2.1bn in 2023 to £9.3bn last year.

Following a “slow” 2023, M&A activity among the UK financial services industry accelerated in 2024, with a 26 per cent year-on-year increase in the number of deals.

UK banks, insurers, and wealth and asset managers publicly disclosed 380 M&A transactions in 2024, the highest annual volume since 2012 and over 100 more than the 272 deals completed in 2023.

The total disclosed deal value also rose, from £12.5bn in 2023 to £20.2bn in 2024.

Meanwhile, the number of overseas firms acquiring UK companies increased from 54 in 2023 to 74 in 2024, although the total disclosed transaction value fell from £6.7bn to £3.9bn during the same period.

The number of UK firms acquiring non-UK companies also rose, from 65 deals in 2023 to 97 in 2024, with the overall deal value remaining steady at £1.7bn.

“UK financial services M&A activity reached its highest annual volume in more than a decade in 2024, as material signs of economic recovery lifted market confidence, valuations rose, and inbound deals increased,” commented EY UK financial services strategy and transactions leader, Damian Hourquebie.

“While there are real signs for optimism, a sense of macroeconomic uncertainty and geopolitical tensions further abroad could create headwinds as we look to the year ahead.

“However, if the UK’s economic outlook continues to gradually improve as expected, we anticipate the focus on M&A activity will continue throughout 2025 as confidence grows and firms accelerate plans to transform.”

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