Experian’s latest data shows a drop in mergers and acquisitions (M&A) activity in the UK during the first half of 2025, reflecting economic uncertainty and a cautious business environment.
Deal volumes fell by 16% in H1 2025 compared to H1 2024, according to Experian’s MarketIQ report. Total values also declined, despite a slight quarterly increase, pointing to continued market headwinds for businesses.
Against this challenging market backdrop, HCR Law has remained resilient and retained its position as the UK’s leading legal adviser for M&A transactions, with notable growth in deal activity, it said.
Since 2019, HCR Law has risen from fourth place to consistently hold the top spot for UK M&A deal volume, regularly advising on transactions of up to £300m in value. That momentum has continued: comparing the first six months of the current fiscal year to the same period in 2019, HCR Law’s Corporate team has achieved a 98% increase in national M&A activity.
The Corporate team has grown into a renowned practice comprising over 100 specialist corporate professionals. In 2024, the team successfully completed 420 transactions, reinforcing its position as a leading adviser in the UK M&A market.
Experian’s latest rankings place HCR Law first in the UK by a margin of 43 deals, demonstrating the Corporate team’s far-reaching capacity to deliver on transactions.
HCR Law has soared through the rankings for M&A activity in Wales since opening its Welsh office in Cardiff in 2020.
The firm retains its third-place position in the latest Experian rankings as it celebrates its fifth anniversary – reflecting its rapid expansion in the region, driven by increasing client demand.
Commenting on the Welsh M&A activity over the last 12 months, Martyn Davies, Corporate Partner, said:
“The corporate M&A market in Wales remains steady but cautious. Deal timelines are slower, and there’s a more selective, conservative approach compared to the broader national market, where larger deals continue to outperform regional activity.”
Opportunities are emerging in the renewable energy and tech sectors, driven by net-zero targets and supported by skilled graduates from local universities. Significant investment is also flowing into the region through the AI Opportunities Action Plan, which aims to boost Wales’ development of AI technologies and data centres.
Private equity and venture capital funds have record levels of capital available and are ready to invest.
Theresa Grech, Corporate Partner, added:
“The recent award-winning deal – Inflexion Private Equity’s acquisition of a majority stake in Nodor International – highlights the substantial investment private equity firms are ready to deploy in regional markets. It also reflects private equity appetite for well-managed manufacturing businesses in Wales with strong growth potential linked to the leisure sector.”
However, challenges persist. Businesses remain cautious with the upcoming November Budget, which could bring fiscal tightening, potentially reducing support for Welsh SMEs and increasing tax burdens such as capital gains tax.
Valuations are also being affected by a cautious market environment, elevated interest rates and a sluggish economy.
Even with market headwinds, HCR Law’s Corporate team continues to demonstrate resilience and adaptability, helping clients navigate complex transactions and seize opportunities for growth.
Richard Wilkey, Head of Corporate at HCR Law, said:
“Despite the challenges in the UK’s M&A landscape, our latest Experian rankings reflect the strength of our client relationships and the depth of our experience. Our reputation for specialist expertise, particularly in the PE mid-market, and client-focused advice has kept us at the forefront of dealmaking as we move into the second half of the year.
“Our clients are at the heart of everything we do. We support them through key decisions at every stage of their business journey, from early growth to strategic acquisitions, and their continued trust in HCR is something we value deeply.
“Our Corporate team continues to deliver a high volume of complex, international and high-value deals, even in tough market conditions. The team is also growing across England and Wales, with several senior hires this year – a clear sign of our momentum and commitment to client success.”
