BY Fraser Tennant
M&A volumes in the UK were down by 19 percent in H1 2025, with 97 percent of UK organisations unprepared for major deals, according to a new survey report by the Diligent Institute.
In its ‘Ready for the deal: Transaction readiness in turbulent times’, Diligent highlights the vulnerabilities that leave organisations slow to capitalise on M&A strategic opportunities – a trend reflected on a global level that will run into the second half of the year.
The report found that while half of those surveyed still prioritise M&A or strategic partnership as part of their growth strategy, 97 percent cite major challenges in deal readiness. Limited resources and economic uncertainty are some of the biggest barriers to success, and lead to deal delays for half of respondents. Additionally, only 5 percent of respondents currently use artificial intelligence-powered evaluations or data collection to support M&A activity.
As a result of these challenges, 49 percent of respondents have delayed deals, 40 percent have enhanced due diligence and 46 percent have adjusted their financial modelling in response to economic uncertainty.
The report echoes the findings of a PwC study earlier this year which revealed that H1 2025 saw M&A volumes in the UK down by around 19 percent compared to H1 2024.
“Organisations that fail to address their glaring transaction readiness gaps risk falling behind in the deal-making landscape,” said Dottie Schindlinger, executive director of the Diligent Institute. “Our research points to a clear need for prioritisation at the board level, defining roles and processes, and enhancing data quality. The transaction readiness gap is real and yet entirely addressable.”
The Diligent survey report – which includes responses from 200-plus global executives and governance professionals – was conducted in partnership with Wilson Sonsini, Oracle NetSuite, CFO Alliance and the CFO Leadership Council.
“As we shift toward the final quarter of the year, we expect to see a small boost in M&A ahead of the autumn budget, as organisations try to get ahead of possible changes to tax,” concluded Scott Bridgen, general manager, risk & audit at Diligent. “It is critical that they should be looking to be on the front foot now by focusing on improvements to board visibility and technology.”
Report: Ready for the deal: Transaction readiness in turbulent times