Mergers and acquisitions involving UK-listed companies reached $132.9bn in 2026, representing a 175% increase from the previous year, according to the London Stock Exchange. This activity generated advisory fees exceeding £1.2bn for investment banks, law firms, and accounting firms involved in transactions. The increase has been driven by substantial private equity capital flows and acquisitive American buyers targeting British companies perceived as undervalued in the market.
JP Morgan led the advisory field, counseling on 14 deals valued at $89.4bn combined, while Slaughter and May topped rankings among law firms. The uptick in transactional work has bolstered compensation packages across major financial institutions. Bonus arrangements have expanded significantly following the government’s removal of restrictions that previously capped bonuses at twice annual salary levels in late 2023, allowing major banks to set their own limits, with some institutions now permitting bonuses up to 25 times base salary for top performers.
The most substantial transaction involved the £10.6bn acquisition of testing group Intertek by private equity firm EQT, generating more than £370m in fees. Senior lawyers at prominent firms have seen substantial compensation increases, with partners at firms including Linklaters and Clifford Chance earning record averages of £2.5m and £2.3m respectively. At boutique advisory firm Evercore, top-earning members received approximately £2m on average, with the highest-paid individual collecting £16.2m.
The compensation surge has attracted criticism from labor representatives amid broader economic challenges facing households. Union officials have called for enhanced taxation of financial institutions, contending that bankers can afford higher tax contributions given substantial bonus payments. Meanwhile, concerns persist regarding the long-term health of London’s equity markets, with only seven listings occurring in the first half of 2026, raising £577m total, though a substantial listing from Airtel Money was announced later this month.
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