Key facts
- London's investment bankers and lawyers have earned over £1 billion from UK takeover deals in 2026.
- The value of M&A involving UK listed companies increased 175% to $132.9 billion this year.
- Fees for advisory services on these deals exceeded £1.2 billion.
- JP Morgan advised on deals worth $89.4 billion, the most of any bank.
- Partners at Linklaters and Clifford Chance law firms earned average annual pay of £2.5 million and £2.3 million respectively.
- The £10.6 billion takeover of Intertek by EQT is expected to generate over £370 million in fees.
London's investment bankers and lawyers have collectively earned over £1 billion from a significant increase in takeover deals involving UK-listed companies in 2026. The value of these mergers and acquisitions has surged by 175% to $132.9 billion, driven by overseas buyers, particularly private equity firms and American companies, targeting British businesses perceived as undervalued.
The surge in deal-making has led to substantial fees for advisory services, exceeding £1.2 billion, according to official filings. This has fueled multi-million pound pay packages for professionals in the City, even as millions of UK households struggle with the cost of living crisis.
JP Morgan has been particularly active, advising on 14 UK company takeovers valued at a combined $89.4 billion. Slaughter and May was identified as the leading law firm in these transactions. The lucrative nature of these deals is further highlighted by the £10.6 billion takeover of lab testing group Intertek by EQT, which is expected to generate over £370 million in fees for the involved banks and advisors.
Lawyers at prominent City firms have seen their earnings rise, with partners at Linklaters averaging £2.5 million annually, Clifford Chance partners averaging £2.3 million, and A&O Shearman partners earning £2.2 million in the year to April. Senior dealmakers at boutique bank Evercore were paid an average of about £2 million, with the highest earner receiving £16.2 million.
These bumper payouts come after the government scrapped a rule capping bonuses at two times annual salaries in late 2023, allowing major investment banks like Goldman Sachs to permit bonuses up to 25 times annual salary for top performers. The financial sector is also lobbying against potential tax increases, with JP Morgan CEO Jamie Dimon and the industry body UK Finance urging against higher taxes on banks.