Deal completions declined in the UK during the third quarter of the year, as M&A was impacted by economic uncertainty. However, figures for the fourth quarter are expected to show a recovery, driven by dealmakers seeking to fast-track transactions ahead of the Autumn Budget.
Quarterly M&A statistics for the third quarter from the Office for National Statistics (ONS) showed that there were just 456 M&A deals involving a change in majority share ownership during Q3 2025, down from 531 in Q2.
Despite lower deal volume, the value of domestic UK M&A deals rose to £5.3 billion, up by £1.9 billion compared to Q2 2025 and by £0.8 billion compared to Q3 2024. However, according to audit and advisory firm RSM UK, the value of inbound UK activity involving overseas buyers fell to £7.9 billion, down by £1.8 billion from Q2 and by £3.6 billion from Q3 2024.
James Wild, partner and head of M&A at RSM UK, said that, despite the drop in the value of inbound M&A, such deals had driven overall volumes during Q3. According to Wild, this may be a result of greater interest among buyers from the USA, with tariffs and political uncertainty in the US potentially driving investors to look across the Atlantic at UK businesses.
Discussing the Q3 dip in M&A, Wild stated that the traditional summer slowdown in activity had been compounded by ongoing uncertainty and financial constraints, meaning the M&A market remained “somewhat mixed”. However, he continued, RSM had seen “a flurry of accelerated completions in October and November as business owners transacted ahead of any potential tax changes in the Autumn Budget.”
Wild stated that activity among private equity buyers, which has been somewhat sluggish during 2025, had started to pick-up amid increasing pressure to deploy, albeit with PE firms continuing to target bolt-on acquisitions over riskier platform deals.
With the Autumn Budget now having been announced, Wild said, business owners will have gained “much-needed certainty so they can now carefully consider whether a sale is the right option for them.”
“Many will be relieved to see the headline rate of capital gains tax wasn’t increased,” he added, “but the reduction in tax relief for employee ownership trusts (EOTs) will undoubtedly slow the pace of change to this ownership model. That said, tax shouldn’t be the main driver for adopting an EOT, and they remain a credible succession route."
Find out more about the reduction in EOT tax relief and other key M&A takeaways from the Autumn Budget
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