The UK business sales market is active, but activity is inconsistent. While deal volumes have recovered from the lows of recent years, buyer behaviour has shifted. Capital is available, but it is being deployed more selectively. Understanding who is buying, and why, is now just as important as understanding valuation.
For business owners considering a sale, particularly first-time sellers, this difference matters. Different buyers bring different priorities, expectations and deal dynamics. Choosing the right route to market can materially affect outcome, timing and certainty.
So, who is buying UK businesses right now?
The Current Buyer Landscape
UK M&A activity is being driven by a relatively concentrated group of buyer types. Each remains active, but each approaches acquisitions in a different way.
Today’s buyer universe includes:
• Private equity-backed investors
• Trade and strategic acquirers
• Management buy-in (MBI) teams
• Overseas buyers returning selectively to the UK market
Private equity continues to play a central role, particularly in the lower mid-market and owner-managed SME space.
Private Equity Buyers: Active, Disciplined, Selective
Private equity buyers remain one of the most consistent sources of demand in the UK market. Many funds are under pressure to deploy capital following extended holding periods and delayed exits in recent years. That pressure, however, has not led to buyers rushing into deals.
Instead, private equity firms are prioritising:
• Profitable, well-run businesses with clear management structures
• Sectors with defensive or recurring revenue characteristics
• Businesses that can support bolt-on acquisitions or platform growth
For business owners asking whether selling a business to private equity is realistic in 2026, the answer is often yes — but preparation is critical. Buyers expect clarity around financial performance, operational resilience and credible growth drivers. Businesses that rely heavily on founders, informal processes or untested forecasts are facing greater scrutiny.
Strategic Buyers: Focused on Fit and Synergy
Trade buyers remain active, particularly where acquisitions support geographic expansion, service diversification or operational efficiencies. Unlike private equity, strategic buyers are typically motivated by long-term integration rather than financial structuring.
In practice, this means:
• Strong alignment with the buyer’s existing operations is essential
• Cultural fit and management capability carry significant weight
• Synergies must be credible and deliverable, not theoretical
For sellers, strategic buyers can offer attractive outcomes, but transactions often involve longer timelines and more complex negotiations.
Overseas Buyers: Returning, but Selectively
International buyers have begun to re-engage with the UK market following a period of caution driven by political uncertainty, currency volatility and wider macroeconomic conditions.
Interest is strongest where UK businesses offer:
• Established domestic market share
• Sector expertise that is difficult to replicate elsewhere
• Opportunities to use the UK as a platform for wider European growth
That said, overseas buyers are typically cautious and well advised. Sale processes must be robust, and messaging needs to translate clearly across jurisdictions.
What This Means for Business Owners
The reality of the 2026 M&A market is that buyers are active, but not forgiving. Well-prepared businesses are attracting strong interest. Others are finding it harder to convert early enquiries into completed transactions.
Understanding who is buying businesses in the UK, and which buyer type is most relevant to your business, is now fundamental to achieving a successful sale.
For a broader view of current conditions, timing considerations and valuation dynamics, see our related insight on the 2026 M&A market.
How Knightsbridge Supports Business Owners
Knightsbridge works with owner-managed businesses across the UK to provide clear, practical advice on selling a business, from early preparation through to completion.
Rather than focusing solely on finding a buyer, the emphasis is on readiness, positioning and running a structured process that reflects current market realities. This includes helping owners interpret market conditions in the context of their specific business, assess timing and exit options, and present opportunities clearly to the right buyers.
The aim is to protect value, maintain momentum and create competitive tension where it genuinely exists.