UK merger and acquisition (M&A) activity improved last year following a weak performance in 2009, according to private equity firm Baird’s ‘Business Services Sector Review’.

The review reveals 2,688 M&A transactions were announced in 2010, up 0.9% over the prior-year period, while there were 164 UK private equity-backed deals in 2010, up from 122 deals in 2009, with a total value of £18.2bn, four times that of 2009.

Meanwhile, European M&A transaction volume was up 3.6% in 2010 in comparison to the global M&A market, which experienced deal volume growth of 15.7%. Deal volume last year was back to 2006 levels, while deal value has increased only to 2004 levels.