Nigel Taylor
- Partner
- Corporate
Making a good deal better: the English law effect
Recent figures published by the Law Society highlight London’s continuing role as a global centre of M&A activity. We reflect on why English law is the premier choice of venue for your transaction, regardless of where the buyer and seller are based or the target incorporated.
Research quoted in the Law Society’s International Data Insights Report 2025 estimates that about 40% of the world’s cross-border business and financial transactions are governed by English law; and in 2021 English law was the governing framework for global M&A deals with an estimated combined value of £250 billion.
Why English law?
English common law is the foundation for 27% of the world’s 320 legal jurisdictions. This widespread adoption means it is broadly familiar to businesses worldwide and supported by centuries of precedent, making it both predictable and reliable.
While rooted in tradition and stability, English law is also flexible and forward-looking, benefiting from a liberal regulatory regime and a judiciary that embraces innovation.
The rise of legal technology in a home market which is increasingly digitally native has further enhanced efficiency and transparency, reinforcing London’s reputation as a trusted hub for complex, high-value transactions.
Key advantages for M&A transactions
- Predictability and Certainty
Centuries of case law provide a deep well of precedent, giving parties confidence in how contractual provisions will be interpreted. This reduces ambiguity and mitigates risk in high-value deals. It also means that smaller transactions can be completed efficiently, minimising the need for extensive bespoke drafting where the scope or complexity of the deal does not warrant it.
- Commercial Flexibility
English law is known for its pragmatic approach to contractual drafting. Parties have wide latitude to agree terms without unnecessary statutory interference, making it ideal for transactions involving multiple jurisdictions, and for bespoke, complex arrangements.
- Risk Mitigation
London’s status as a global legal hub is complemented by its central role in the international insurance market. There is a mature and sophisticated market for specialist warranty and indemnity (W&I) insurance designed to reduce risk in M&A transactions. These policies are structured to work seamlessly with English law documentation, providing an additional layer of protection for buyers and sellers alike.
- Robust Dispute Resolution
London remains a global leader in arbitration and litigation. English courts are respected for their independence, efficiency, and enforceability of judgments, while arbitration under English law is widely recognised internationally.
- Global Familiarity
Because English law underpins many common law systems, it is often the “neutral” choice in cross-border deals, reducing friction between counterparties from different jurisdictions. It is common for deals to be governed by English law even where neither buyer nor seller is incorporated in England, and regardless of whether the target is an English entity. Parties may also choose English law where the target has UK assets—such as in corporate real estate transactions—or where the business has a significant UK presence. In doing so, buyers benefit from the London M&A market’s deep familiarity with due diligence issues critical to UK business.
A Strategic Advantage
Choosing English law for your M&A transaction is more than a legal decision—it’s a strategic one. It offers a blend of predictability, flexibility, and global recognition that few jurisdictions can match. For businesses navigating complex, cross-border deals, English law remains the gold standard.
Wedlake Bell is rooted in London, but with a global reach. Our team combines deep local expertise with international experience to guide clients through every stage of the deal process—delivering clarity, confidence, and commercial value.
If you are considering an M&A transaction, or want to explore how English law can give your deal the edge, get in touch with us today. We are experienced advisers on cross-border M&A transactions both as lead counsel and on an execution-only basis – in all cases working alongside your trusted local lawyers (or a recommendation from our network of international contacts) and their jurisdictional expertise. Read more about our recent international experience here.
This article is for general information purposes only and does not constitute legal advice or a comprehensive statement of the law. Specific legal advice should always be sought in relation to individual circumstances.
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Benedict Holmes
- Solicitor
- Corporate
