10th January 2025
In 2024, the UK financial services sector experienced a remarkable M&A activity surge, with 380 deals announced. This marked a 26% increase from 2023 and represented the highest annual volume since 2012. According to EY’s latest financial services M&A analysis, the total disclosed deal value rose from £12.5bn in 2023 to £20.2bn in 2024, reflecting renewed confidence in the sector amid signs of economic recovery.
Sector Highlights
Wealth and Asset Management: Deals in this segment increased from 107 in 2023 to 122 in 2024, while the disclosed deal value skyrocketed from £2.1bn to £9.3bn. This sharp increase indicates rising interest as firms aim to scale operations and enhance their service offerings.
Insurance: The insurance sector saw significant activity, with the number of deals climbing from 112 in 2023 to 188 in 2024. The disclosed deal value also grew from £3.7bn to £4.6bn, driven by firms seeking to consolidate and strengthen their market positions.
Banking: Banking deals increased from 53 in 2023 to 70 in 2024, although the total disclosed deal value slightly declined from £6.7bn to £6.3bn.
International Dynamics
Cross-border activity played a crucial role in the M&A landscape:
The number of non-UK firms acquiring UK targets grew from 54 deals in 2023 to 74 in 2024, reflecting heightened international interest in UK financial services. However, the total disclosed value of these deals fell from £6.7bn to £3.9bn.
UK firms acquiring overseas targets rose from 65 deals in 2023 to 97 in 2024, with the overall deal value remaining steady at £1.7bn.
Driving Factors and Future Outlook
Damian Hourquebie, UK Financial Services Strategy and Transactions Leader at EY remarked, “UK financial services M&A activity reached its highest annual volume in more than a decade, as significant signs of economic recovery boosted market confidence, valuations rose, and inbound deals increased.”
While optimism is prevalent, Hourquebie cautioned that macroeconomic uncertainties and geopolitical tensions could present challenges in the coming year. Nevertheless, as the UK economy gradually improves, M&A activity is expected to remain strong in 2025, with firms increasingly focusing on transformation and strategic growth.
Industry Implications
The surge in M&A activity highlights the evolving landscape of UK financial services. Firms leverage acquisitions to achieve scale, diversify their offerings, and address regulatory challenges. Substantial growth in the wealth and asset management sector, in particular, indicates a shift toward tailored, high-value services as firms position themselves for long-term resilience.
At Chapters Capital, we specialise in financial planning and wealth management M&A, helping firms navigate transitions and explore growth opportunities. Whether you are considering a sale, merger, or expansion, our tailored approach ensures you receive expert guidance at every step. Contact one of our professional associates today for a confidential, no-obligation consultation.