UK Financial Services M&A on the rise, as deal volume hits a 5 year high

Recently released analysis by EY of financial services M&A transactions in 2021 reveal deal volume hit 252 transactions in 2021, an increase from 134 in 2020 and representing a five year high.

Growth was particularly strong in the wealth and asset management sector, with a doubling in deal volumes from 45 to 113 and aggregate deal value increasing tenfold from £1.2bn to £10.5bn. Other particularly noteworthy aspects of the analysis include the report of growth in overseas interest in the UK financial services sector, with the number of overseas buyers acquiring UK targets rising from 33 to 63.

At RWK Goodman, our Banking & Financial Services group saw continued growth in our involvement in M&A in the sector, with highlights including advising Fidelius Financial Holdings on its strategic partnership with deVere Group and advising the shareholders of institutional investor knowledge platform Savvy Investor on its sale to global business information provider Pageant Media.

James Worrall, a partner in our Banking & Financial Services group comments “2021 saw M&A activity in the sector bounce back from the pandemic induced lull in 2020. 2021 Saw a 5 year high for M&A activity by deal volume and we anticipate this momentum continuing into 2022 with the UK’s continued strength as a destination for financial services businesses, and status as a global Fintech hub, likely to see the UK remain an appealing market for domestic and international investors.”

James continued “with competition for market advantage, and continued digitisation in the sector, consolidation is likely to remain a particular trend in the wealth and asset management sector, an area where the team at RWK Goodman has real expertise.”