UK M&A Faces Headwinds—Yet Wealth Management Consolidation Continues
- Chapters Capital
- Mar 7
- 2 min read
7th March 2025
UK M&A activity slowed in Q4 2024, with the total number of domestic and cross-border deals decreasing to 402 from 464 in Q3. This decline reflects a complex deal-making environment influenced by economic uncertainty, rising costs, and geopolitical challenges. Inflation rose to 3% in January 2025, and the upcoming increase in National Insurance contributions and the national living wage is expected to add further pressure on corporate balance sheets.
Despite these challenges, deal-making continues, particularly for high-quality assets. Liquidity remains available, and international buyers are taking advantage of lower UK valuations to pursue acquisitions. Analysts suggest that while borrowing costs remain a concern, a stabilising macroeconomic environment and lower base rates may boost M&A activity, especially in the lower mid-market.
Although broader market activity has slowed, financial services M&A has stayed resilient. Recent deals, such as Saltus' acquisition of Lowes Financial Management and Shackleton’s ongoing buy-and-build strategy, highlight a continued demand for scale and consolidation. Similarly, Wren Sterling’s recent trio of acquisitions demonstrates that firms with strong integration models continue to attract sellers.
For wealth managers, advisers, and investors, understanding these macroeconomic shifts is crucial for navigating the M&A landscape. As financial services firms continue to consolidate, strategic growth opportunities remain. However, sellers must remain aware of valuation trends and financing dynamics in this changing market.
If you are considering your next move in the sector, Chapters Capital can provide valuable insights and guidance on positioning your firm in today’s evolving M&A environment.
At Chapters Capital, we specialise in financial planning and wealth management M&A and understand the importance of strategic acquisitions for growth. Whether you are considering a sale, merger, or expansion, contact one of our professional associates today for a confidential, no-obligation consultation.