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BDO has advised on a total of 257 deals in 2025 with a combined disclosed value of £10.9bn, according to figures released by the firm, with activity picking up in the second half of the year.
More than 60% of the transactions involved private equity, while over 40% had a cross-border element, reflecting continued international interest despite a volatile macroeconomic backdrop.
Deal activity was spread across a range of sectors, with the strongest volumes recorded in technology, media and telecommunications, which accounted for 55 deals. Manufacturing and engineering saw 39 transactions, while healthcare, pharma and life sciences recorded 37 deals. Real estate accounted for a further 28.
Gurpal Ahluwalia, head of deals at BDO, said: “We saw the 2025 deal market rebound strongly in the second half of 2025, with an increase in deal volume and value in this period across BDO’s core sectors. This suggests a trend towards an increase in deal value reflecting renewed confidence and strategic activity across the UK market.
“Private equity continues to drive momentum and investment activity. We’ve seen an uplift in companies pursuing bolt-on acquisitions and innovative deal structures to create value and drive growth. Debt Advisory services have also experienced a notable uptick as businesses seek creative funding solutions to maintain deal flow.
Despite ongoing geopolitical uncertainty and shifting investor priorities, Ahluwalia said there was “cause for cautious optimism” heading into 2026, citing strong activity in regional markets including the Midlands and Scotland.
BDO was ranked the number one financial due diligence provider in the UK and Ireland by deal volume in the Mergermarket UK Accountant League Tables 2025, marking the fifth consecutive year it has held the position.
Derek Neil, head of transaction services at BDO, added: “Deal preparation and diligence are more rigorous than ever, with heightened focus on the visibility of future performance, as well cyber security, AI, and tax. The best prepared businesses have considered these areas pre-deal, and this is critical to maximising value.
“ESG remains a critical value driver, with buyers and investors demanding robust strategies and data. Upcoming UK legislation is expected to reignite ESG discussions, making it a timely area to focus on for dealmakers and companies looking towards an investment event.”
