North-west M&A market hit £4.1 billion in transactions in Q1 2022

The Mergers and Acquisitions (M&A) market in the North-west saw transactions totalling £4.1 billion in the first quarter of 2022, according to analysis by Experian.

Compared to the same period last year, the total value of deals rose 9.6% in the region, although was well below the previous quarter’s results, considered an outlier in Experian’s M&A Review for the UK and Ireland.

In the North-west, acquisitions made up the bulk of transactions, some 74%, with professional services dominating the deals landscape, following the IT and Communications and Wholesale and Retail sectors.

The North-west was also one of the few regions to record a slight uplift in deal values on its 2021 performance. The region was the fourth best performing by volume of transactions, behind London, the South East and the Midlands, however, ranked behind only the capital (£40.5 billion) and Scotland (£5.2 billion) in terms of the value of deals.

North-west based businesses were also involved in some way in 13% of all deals nationwide, highlighting the increasing strength of the region’s professional services sector, despite only representing 7% of the UK M&A market by value.

Commenting on the national picture, Jane Turner, Research Manager at Experian MarketIQ, said:

“After the UK and Ireland M&A market enjoyed uniquely favourable conditions for deal making last year, our new set of figures suggest that many businesses have adopted a more watchful approach in Q1.

“That said, the mood is by no means doom and gloom and there are still compelling reasons for companies to press ahead with their investment plans and grow by M&A – there is still the need to digitize and to respond to the increasingly key area of ESG, private equity is still sitting on large cash piles and driving the market, and corporate balance sheets remain strong. Whether this constitutes a temporary pause and M&A will soon come roaring back – as was the case following the initial shock of the pandemic – or is indicative of a more long-term pattern, should become clearer as we move further into 2022.”

Experian MarketIQ’s full report on the UK and Ireland’s M&A market is available to read in full online here.