UK M&As hit rock bottom

by Cameron Roberts

More from this author

16 Dec 2013

  • Financial Director
  • Comments
UK Union Jack flag

UK MERGERS and acquisitions (M&A) have reached their lowest point in eight years, after falling for the second year running.

M&A activity in the UK declined by nearly 20% against 2012, with the value of the 1,898 deals declared this year falling 38%, to $80bn (£49.1bn) from $129bn in 2012.

Volumes also fell globally by 6.2% against 2012, with the 37,257 deals announced amounting to $2.3trn, a 6.3% decline in value against last year.

"M&A activity both globally and in the UK has remained bleak. Deal inertia has continued in 2013 as many companies opted to spectate rather than participate in the M&A market," said Jon Hughes, EY's transaction advisory services leader for UK & Ireland.

Though deal values fell globally, France's rose by 40% to $41.4bn, with Germany's also rising 36% to $83.1bn.

The global fall in M&A value was lessened by a stellar performance in the US, which saw deal value involving US asset acquisitions up 27% on last year, the US also contributed 52% value and 28% volume of all global deals.

Jon Hughes said: "Any return to growth for M&A in 2014 will be led by the mature economies as the majority of investment capital is being allocated to developed markets and the volume and value of deals in those markets will have a significant impact on the global deal economy."

Sectors were also hit by the drop in deal volumes. The worst falls were seen in metals and mining (down 27%), and oil & gas (down 21%). Metals and mining also saw a 51% drop in value.

Though M&A suffered another recession year, Hughes warned against complacency: "If the current improvement in economic indicators continues, the first half of 2014 offers the last opportunity to make pre-emptive moves to get ahead of the competition."

Visitor comments

blog comments powered by Disqus

Add your comment

We won't publish your address

By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

HM Revenue & Customs

Head Of Financial Control

HM Revenue & Customs, Telford, Full Time, Permanent/p>



Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials


Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you



Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.


iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.