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Investment banks, law firms and accountancy firms in London have earned more than £1.2bn from takeover deals involving UK-listed companies this year, according to an analysis of company filings, as merger and acquisition activity reaches its highest levels in recent years.
The value of mergers and acquisitions involving companies listed on the UK stock market has risen sharply in 2026. Figures cited from the London Stock Exchange put the total value of those transactions at $132.9bn, equivalent to about £100bn, representing a 175% increase compared with the previous year.
The surge has generated substantial advisory fees for City firms and comes amid wider debate over executive and professional pay, the competitiveness of the London stock market and the continuing cost pressures facing households across the UK.
A combination of private equity investment and overseas corporate buyers has contributed to the increase in takeover activity.
British companies have attracted international interest as investors assess valuations and opportunities in the UK market. The growing number of deals has also increased demand for specialist advice from investment banks, lawyers and accountants.
According to the figures cited in the analysis, JPMorgan has advised on more UK-listed takeovers than any other bank so far this year. The bank has worked on 14 transactions with a combined value of $89.4bn, or approximately £67.6bn.
Slaughter and May was identified as the leading law firm by the number of relevant transactions.
One of the year's largest transactions is the proposed £10.6bn takeover of laboratory testing company Intertek by private equity firm EQT.
The transaction is expected to generate more than £370m in fees, with Morgan Stanley, Barclays and Deutsche Bank advising EQT. Intertek has appointed Goldman Sachs, JPMorgan Cazenove and PJT Partners.
The total fees generated across the City could ultimately be higher than the figures currently available because some transactions have not yet completed or have not had their financial details fully disclosed.
That includes the £5.7bn proposed takeover of airline easyJet by private equity group Apollo Global Management, which was agreed in August.
The increase in deal activity has also contributed to substantial remuneration for senior professionals at some major financial and legal firms.
Partners at leading London law firms have reported average annual earnings running into millions of pounds. Linklaters partners received an average of £2.5m in the year to April, while Clifford Chance partners received an average of £2.3m, according to figures cited in the report. A&O Shearman partners received an average of £2.2m.
At boutique investment bank Evercore, senior managing directors involved in dealmaking received an average of about £2m, while its highest-paid member received £16.2m during the year.
The figures represent average remuneration or disclosed pay at individual firms and should not be interpreted as the earnings of every employee or banker.
The financial sector has also seen changes to the rules governing bonuses.
The UK Government removed the previous cap limiting bankers' bonuses to twice their annual salary in late 2023. Banks can now determine their own arrangements, subject to wider remuneration and regulatory requirements.
Some major investment banks subsequently introduced significantly higher potential bonus multiples for senior performers.
The change has contributed to renewed discussion about pay within the financial sector, particularly as policymakers consider taxation and regulation affecting banks.
The banking industry is also facing discussion over possible tax changes.
UK banks currently pay corporation tax at a rate of 28%, consisting of the standard corporation tax rate and a separate banking surcharge.
The sector has argued against further increases, while the Government is preparing for its upcoming Budget.
JPMorgan chief executive Jamie Dimon has previously warned against higher taxes on banks in the UK, while industry body UK Finance has also expressed concerns about the potential impact of additional taxation.
The takeover boom has renewed debate about the future of London's stock market.
Supporters of greater takeover activity argue that acquisitions can provide shareholders with value and bring investment into UK businesses. Critics have raised concerns about the number of British-listed companies being acquired by overseas investors and what that could mean for the long-term depth and competitiveness of the London market.
The financial benefits for City advisers also come against a wider economic backdrop in which many households continue to face pressure from living costs.
The scale of takeover activity means investment banks, lawyers and accountants are playing a significant role in one of the UK's busiest corporate deal periods in recent years.
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