Sector activity across the UK M&A market varies. While overall transaction volumes remain selective, buyer appetite continues to concentrate around specific industries and business characteristics.
For owner-managed businesses considering a sale, sector positioning can influence the level of interest generated, the type of buyer engaged and the competitiveness of a process. In 2026, demand is less about trend-driven enthusiasm and more about resilience, recurring income and strategic fit.
Below are the areas where buyer activity is currently most consistent within the UK mid-market.
Professional & Business Services
Professional Services and Business Services remain active parts of the UK M&A landscape. Fragmented markets, recurring client relationships and opportunities for consolidation make these sectors attractive to acquisitive trade buyers and private equity-backed groups.
This includes accountancy practices, specialist consultancy, facilities management, cleaning and security businesses. Where client retention is strong and management structures are clear, these businesses can generate competitive interest even in a disciplined market.
Buyers in this space are typically seeking bolt-on growth, geographic expansion or service diversification rather than speculative upside.
Technology and IT Software & Support
Technology continues to draw attention, but the focus is narrower than in previous cycles. Buyers are prioritising businesses that combine technology with service delivery, particularly where there is predictable revenue and embedded client relationships.
IT Software & Support providers, niche SaaS platforms and tech-enabled advisory firms often sit within this category. In the current environment, buyer appetite remains disciplined and quality-led, reflecting the wider themes shaping UK business buyers in 2026.
Healthcare, Medical & Childcare
Healthcare and Medical businesses continue to attract sustained interest, supported by structural demand and ongoing service need. Childcare providers and specialist care operators can also generate attention where regulatory compliance and operational stability are demonstrably strong.
In these sectors, buyers focus heavily on management depth, compliance frameworks and sustainable margins. Where those fundamentals are in place, transactions remain achievable despite broader market caution.
Distribution, Logistics & Infrastructure-Linked Services
Distribution & Logistics businesses, along with certain infrastructure-supporting services, continue to see activity where they sit within essential supply chains.
Buyers are typically looking for repeat contracts, defensible niches and operational efficiency. Asset-light operators with strong customer relationships are often viewed more favourably than businesses exposed purely to volume fluctuations.
Consumer-Facing & Specialist Retail
Retail & E-Commerce, Food & Drink, Beauty, Hospitality & Events and Leisure & Travel present a more varied picture.
Demand in these sectors is highly dependent on positioning. Niche brands, strong local reputations and differentiated offerings can attract strategic buyers, while undifferentiated operators competing primarily on price may face greater scrutiny.
In consumer-led sectors, resilience of margins and operational efficiency tend to carry more weight than growth projections alone.
Manufacturing, Engineering & Specialist Production
Manufacturing & Engineering, Printing & Publishing, Textiles and Vehicle Maintenance & Hire businesses can attract interest where they demonstrate specialist capability or embedded customer relationships.
Buyers in these sectors often prioritise defensible expertise, recurring commercial relationships and evidence of long-term demand. Clear operational processes and reduced reliance on individual founders further enhance attractiveness.
Across these sectors, completed transactions provide a clearer picture of how buyer appetite translates into real outcomes. To explore recent activity relevant to your industry, see completed deals in your sector.
Characteristics Attracting Buyers Across Sectors
While sector dynamics influence demand, buyer appetite is consistently shaped by business fundamentals.
Across the UK mid-market, buyers are typically prioritising:
•Recurring or predictable revenue streams
•Clear management structures and limited founder dependency
•Defensible market positions or specialist expertise
•Demonstrable margin resilience
•Credible pathways for consolidation or expansion
A business operating in a popular sector without these characteristics may struggle to generate meaningful competition. Conversely, a well-run business in a less fashionable sector can still attract strong interest when fundamentals are compelling.
In practice, sector positioning and deal structure increasingly go hand in hand, particularly in a market where certainty and preparation influence outcomes, shaping how business deals are being done now.
What This Means for Business Owners
Sector demand can inform expectations, but it does not replace preparation.
Owners considering selling a business should focus on how their company sits within its sector, what differentiates it from competitors and how clearly that narrative can be articulated to potential acquirers.
Understanding where buyers are most active can help guide timing and strategy. However, readiness, positioning and deal structure ultimately determine whether interest converts into completion.
How Knightsbridge Supports Sector Positioning
Knightsbridge works with owner-managed businesses across the UK to assess how sector dynamics influence buyer appetite and deal outcomes.
Understanding where demand sits within your industry is only part of the equation. Positioning a business clearly within that sector, identifying the right buyer audience and running a structured process are what convert interest into completed transactions.
For business owners considering a sale, early discussion around sector appetite and positioning can materially influence both competitive tension and deal structure.