More than two-thirds of UK CEOs are planning to make an acquisition during 2025, according to a new survey, as M&A appetite continues to improve amid both a more confident business environment and growing concerns about technological change.
The latest EY-Parthenon Global CEO Outlook Survey surveyed 1,200 global CEOs, including 100 Chief Executives at UK businesses. Nearly all of the respondents (99 per cent) said that they expect to actively pursue transactions during 2025.
62 per cent said that they would target an acquisition of another business – compared to just 40 per cent in the previous edition of the CEO Outlook in September 2024. The same proportion of UK leaders said that they would look at joint ventures (JVs) and strategic alliances.
The rebound in M&A appetite comes with optimism growing around the UK’s overall business environment, with 82 per cent of UK respondents saying they are “very” or “somewhat” optimistic about the business landscape over the coming year. In September, this figure stood at just 67 per cent.
78 per cent stated that they expect to see revenue growth this year and 77 per cent said that they expected to maintain a competitive position during 2025.
However, there is also seemingly a more strategic aspect to growing M&A sentiment: technology. 43 per cent of CEOs said they would seek to enhance their internal business operations through digital technologies. According to the report, the top priority for UK bosses considering acquisitions was whether deals would improve product and process innovation.
EY-Parthenon UK&I managing partner for strategy and transactions Silvia Rindone said that M&A was set to rebound this year “driven by strategic imperatives, digital innovation, and a more favourable regulatory climate.” Rindone added that the report reflected “a resilient and forward-thinking mindset among UK CEOs.”
“However,” she continued, “with nearly a quarter citing cost and [return on investment] as key factors in shaping their digital transformation strategies, it’s clear that businesses are seeking a balance between innovation and sustainable growth.”
In terms of where UK CEOs are planning to invest, around 52 per cent stated that they were planning to invest domestically over the coming year. Approximately 20 per cent, meanwhile, planned to increase their spending in America, while 18 per cent are targeting investment in France.
Looking at CEO responses globally, the survey showed that the UK was one of the top five global investment hotspots for 2025. EY-Parthenon wrote that the “UK’s dynamic financial services sector, entrepreneurial business culture, flexible regulatory environment, highly educated workforce and global connectivity are significant strategic advantages for attracting international corporate expansion and investment initiatives.”
However, the report added that, despite being relatively politically stable, the UK “must decide on the future of its most important trading relationships. Recalibrating its relationships could be both a headwind and tailwind for trade and investment, as the UK also looks to deepen trade and investment with the US and Asia.”
Find out more about the trends that could shape UK M&A this year
Foreign takeovers continue to play a huge role in UK dealmaking
The company is a specialist provider of interior fit-out and project management solutions. The business offers a wide range of services as part of its offering, including design and planning, electrical and mechanical works, data installation, and jo...
The company is a business-to-business wholesaler of cask ales, continental lagers, and craft cider. Since its establishment, the business has cultivated strong relationships with high-profile and local breweries, gaining exclusive access to their pro...
Two companies operating across the UK and international markets respectively are offered for sale. They provide a wide range of sustainable travel accessories, specialising in consumer tech, travel gadgets and comfort solutions such as earphones, pow...
RELOCATABLE
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.