August has long been a quieter month for UK M&A as dealmakers retreat for the summer, but the latest MarktoMarket Valuation Barometer shows resilience beneath the seasonal dip. Despite lower volumes, £6.9 billion worth of transactions were completed or announced, underlining that strategic capital is still being deployed across key sectors.

Deal Activity Holds Firm

By the end of August, 339 transactions had been recorded, with the final tally expected to reach 404 once late-reported deals are included. While down from peak months earlier in the year, the level of activity confirms that UK dealmaking remains broad-based and liquid.

Standout Transactions

• Centrica & Energy Capital Partners – Grain LNG (£1.5bn): The acquisition of National Grid’s Isle of Grain LNG terminal reflects continued investor appetite for critical energy infrastructure.
• Terumo – OrganOx (£1.11bn): A Japanese buyer snapping up an Oxford spin-out highlights global interest in UK healthcare innovation. OrganOx’s technology in organ preservation is now set for expansion across the UK, EU, Australia, and Canada.
• Unite Group – Empiric Student Property (£723m): A significant consolidation move in student accommodation, creating a £10.5bn portfolio focused on postgraduates and non-first year students.
• Other notable deals: Carlyle’s £148m acquisition of Intelliflo (financial software), Halma’s £129m purchase of Browline (gyroscopic tech), Sidara’s £216m acquisition of John Wood Group (engineering), and APG’s £225m investment in UK PPP assets.

These transactions demonstrate the variety of strategic and cross-border interests—from energy and healthcare to property and infrastructure—that continues to underpin the UK market.

Who’s Buying?

Trade buyers dominated August, accounting for 63% of activity. Private equity and its portfolio companies represented 27% (9% direct, 18% PE-backed), while listed companies made up 10%. This balance suggests that both strategic consolidators and financial sponsors remain active, with different buyer groups finding opportunities across deal sizes.

Confidence Slips Below 50

One cautionary sign comes from MarktoMarket’s CF Confidence Index, which fell from 58 in July to 48 in August—the first dip below the 50 “net confidence” threshold this year. After ranging between 45 and 62 over the past 12 months, the decline suggests growing caution about the near-term outlook. Whether this reflects macroeconomic uncertainty, regulatory risks, or sector headwinds remains unclear, but it’s a trend worth monitoring.

Why It Matters

MarktoMarket’s methodology, which incorporates provisional data and updates past months as more deals are reported, provides a robust view of activity. For corporate finance professionals, business owners exploring exit options, and investors assessing conditions, this level of transparency gives confidence in the data’s relevance.

Looking Ahead

As autumn arrives—a traditionally more active dealmaking season—the key question is whether the confidence drop is a temporary summer wobble or an early sign of cooling sentiment. For now, the steady flow of strategic and international deals suggests the UK market remains resilient, even as buyers grow more selective.

Takeaway: UK M&A remains active and diverse, with nearly £7bn of deals completed in a “quiet” month. The fundamentals are intact—but dealmakers should closely monitor sentiment indicators as we head into the final quarter. 

Have a great week!