London dealmakers collect £1.2bn as takeover activity surges
Investment bankers, lawyers and accountants in London have earned more than £1.2bn from a surge in takeovers of UK-listed companies this year. Deal activity has risen sharply as private equity firms and overseas buyers target undervalued British businesses, prompting criticism of City pay levels during the cost of living crisis and concern about the future of London’s stock market.
The value of such mergers and acquisitions increased 175% to $132.9bn (£100bn). JP Morgan advised on 14 deals worth $89.4bn (£67.6bn), while the £10.6bn Intertek takeover is expected to generate more than £370m in fees; senior partners at leading law firms earned averages of up to £2.5m, and Evercore’s best-paid member received £16.2m. The figures may underestimate total fees because they exclude some incomplete or unpublished deals, including Apollo’s proposed £5.7bn purchase of easyJet.
- UK takeover activity surged 175% this year.
- Deal advisers earned more than £1.2bn.
- High City pay has drawn union criticism during the cost of living crisis.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Supporters would argue that the fees reflect the specialised expertise, long hours and substantial legal and financial risks involved in complex takeovers, particularly when advisers help unlock value for shareholders and keep London competitive as a global financial centre. They might also say strong demand for British companies signals that many are undervalued, and that successful dealmaking can bring investment, efficiency and economic growth.
The case against
Critics would argue that fees and senior pay reaching such levels are disproportionate, especially during a cost of living crisis, and that they reward intermediaries even when takeovers lead to job losses or weaken domestic ownership. They may also contend that the surge in foreign and private equity acquisitions exposes the undervaluation of UK-listed companies and risks hollowing out London’s stock market rather than strengthening it.
Read the full article at the source →
Originally published by The Guardian as “London’s investment bankers and lawyers make more than £1bn in takeover frenzy”.