Why international buyers are playing a bigger role in UK M&A
Sam Barr
by Sam Barr
Cross-border activity has always played a meaningful role in mergers and acquisitions (M&A) in the UK. What has become more noticeable in recent years is the extent to which international acquirers now feature in competitive processes. In many transactions, they represent a large share of credible interest and, in some cases, set the pace on valuation. For a wide range of overseas corporates and investors, the UK remains one of the most straightforward and familiar entry points into Europe and neighbouring markets.
Several market characteristics underpin this. The UK’s legal and regulatory environment is well understood internationally, and deals tend to follow a predictable path. Diligence expectations are also broadly aligned with other mature markets. Taken together, this reduces uncertainty for overseas acquirers and makes the UK a relatively efficient place to transact, even when stepping into a new geography.
The nature of UK private businesses is another factor. Across multiple sectors, there is a deep pool of founder-led companies with specialist capabilities, strong customer relationships, and well-defined market positions. For international buyers, these attributes can be difficult or time-consuming to develop organically, making established UK businesses an attractive platform for expansion.
A recent example is the sale of Edge Medical, a UK-exclusive distributor in the medical devices sector. Although the company operated solely in the UK, the majority of interest came from overseas. The eventual acquirer, a European strategic group, viewed the transaction as a way to secure a ready-made UK presence. Regulatory compliance, supplier agreements and long-standing customer networks were all in place – elements that would otherwise require a multi-year build-out.
A similar theme is emerging in the technology space. In an ongoing mandate for a UK software company with a scalable product, several of the most engaged parties are international. For these buyers, the strategic appeal lies in the ability to integrate a proven UK solution and roll it out quickly across larger existing markets. The product itself is important, but the ability to accelerate regional expansion is often the decisive factor.
International acquirers tend to approach UK opportunities through a strategic lens. Their assessments often focus on how a business would perform once integrated into a wider group, rather than on stand-alone metrics alone. Many have dedicated M&A teams and established internal processes, which can support relatively quick decision making once they have conviction in the fit. Continuity of management during the early integration period is also something many international buyers actively seek.
Cross-border interest is by no means limited to specific industries. The common thread is not the sector itself but the underlying characteristics – capability, defensibility, and the potential to serve as a foothold for broader expansion.
These trends have practical implications for UK owners planning an exit. The most competitive bidder may be domestic or international, and the presence of overseas buyers can materially influence valuation and preferred deal structures. Cross-border transactions also tend to involve more detailed diligence and greater focus on integration planning, so preparation and clear positioning become increasingly important.
As international participation remains a core part of the UK deal landscape, collaboration between advisers in different jurisdictions is becoming more valuable. Overseas buyers rely on local insight to navigate market norms, while UK businesses benefit from understanding how international groups evaluate and integrate acquisitions. For networks with global reach, this creates meaningful opportunities to support clients as they engage with a buyer universe that is increasingly international in scope.
Sam Barr joined Gerald Edelman in 2023, having previously advised on European M&A transactions at a US mid-market investment bank and UK deals at an independent boutique. He focuses on sell-side M&A and growth capital advisory for UK lower-mid-market businesses across a broad range of sectors and typically works with founders and management teams on transactions of up to GBP 100 million in enterprise value. Contact Sam.
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