{"id":126,"date":"2024-02-16T10:26:30","date_gmt":"2024-02-16T10:26:30","guid":{"rendered":"https:\/\/publicmatrends.traverssmith.com\/?page_id=126"},"modified":"2026-02-12T12:40:15","modified_gmt":"2026-02-12T12:40:15","slug":"2025-trends-and-highlights","status":"publish","type":"page","link":"https:\/\/publicmatrends.traverssmith.com\/2026\/2025-trends-and-highlights\/","title":{"rendered":"2025: trends and highlights"},"content":{"rendered":"\n
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Small and mid-cap deals \u2026 but for Main Market companies<\/h2>\n\n\n\n

The number of higher value firm offers fell slightly from the notable increase seen in 2024, with 11 of the 57 (19%) firm offers in 2025 having a value over \u00a31 billion, compared to 17 of the 56 (30%) firm offers made in 2024. All of the firm offers over \u00a31 billion in 2025 were for companies listed on the Main Market.<\/p>\n\n\n\n

Small and mid-cap deals continued to represent the majority of transactions in 2025, with the majority of firm offers having a deal value under \u00a3250 million (27, 47%), leaving 19 (33%) firm offers with a deal value between \u00a3250 million and \u00a31 billion.<\/p>\n\n\n\n

Slightly surprisingly, there was a slight increase in offers for Main Market listed companies, with 32 of the 57 (56%) firm offers, compared to 30 of the 56 (54%) firm offers in 2024. The aggregate deal value in 2025 was just under \u00a338 billion, representing approximately 70% of that in 2024.<\/p>\n<\/div>\n\n\n\n

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Industry preferences<\/h2>\n\n\n\n

Companies from the financial, computer and electronic equipment and real estate sectors continued to attract the most attention in 2025, in line with previous years. The financial sector was the most popular with 14 of the 57 (25%) (2024: seven of 56 (13%)) firm offers. The next most popular sectors were computer and electronic equipment with nine of the 57 (16%) (2024: six of 56 (11%)) firm offers and real estate with seven of the 57 (12%) (2024: nine of 56 (16%)) firm offers.<\/p>\n\n\n\n

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Computer and electronic equipment<\/h3>\n\n\n\n

The technology sector has been one of the most active sectors for several years and continues to see activity in both the mid-cap and large-cap space. These significant levels of activity are likely to continue in 2026 as investment in AI and associated technologies continues. Supporting sectors providing the energy to power AI are likely to also benefit from increased investment.<\/p>\n<\/div>\n\n\n\n

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Real estate<\/h3>\n\n\n\n

The continued interest in real estate businesses, and in particular, UK Real Estate Investment Trusts (“<\/em>REITs<\/strong>“<\/em>), is largely a result of them continuing to trade at significant discounts to their net asset value (NAV). The REIT market has seen notable consolidation in the last couple of years, with buyers hoping to benefit from cost synergies and savings from delisting.<\/p>\n\n\n\n

A particularly high-profile example of consolidation within the REIT market in 2025 was the acquisition of Assura plc<\/em> by Primary Health Properties plc, which the Travers Smith team advised on. In addition, we advised Care REIT plc<\/em> (now CareTrust UK) on its takeover by CareTrust REIT, Inc., and so we continue to benefit from direct market insight and experience within this sector.<\/p>\n<\/div>\n\n\n\n

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Other<\/h3>\n\n\n\n

On the other hand, the construction and industrials sector fell in popularity from 2024 with only three of the 57 (5%) (2024: six of 56 (11%)) firm offers, the support services and utilities sectors showed revived interest, with the support services sector attracting six of the 57 (11%) firm offers, up from three of 56 (5%) in 2024, and the utilities sector attracted two of the 57 (4%) firm offers, the first ones since 2022.<\/p>\n<\/div>\n<\/div>\n\n\n\n

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International bidders<\/h2>\n\n\n\n

Overseas bidders continued to show steady interest in UK public companies, with bidders on 35 of the 57 (61%) firm offers being incorporated outside the UK, matching that in 2024. The US crossed the threshold for the country of origin for most overseas bidders, with 18 bidders (51%) (up from 47% in 2024). Companies incorporated in Canada were the second most active overseas bidders, with five of the 35 (14%) firm offers involving international bidders incorporated there.<\/p>\n\n\n\n

US bidders were primarily interested in companies in the financial, computer and electronic and real estate sectors.<\/p>\n\n\n\n

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