Fewer UK companies were targets of mergers and acquisitions in the first quarter of this year than at any point since 1993, according to new research, as chief executives at domestic and foreign companies remain reluctant to call the bottom of the M&A market and risk overpaying for assets.

A total of 422 UK companies have been the target of M&A deals so far this year, a 53% drop on the 791 over the same period last year and the lowest quarterly figure since the fourth quarter of 1993, according to accountant and business services firm Grant Thornton.