Over the past 18–24 months, business owners have faced mixed messages about the UK M&A market. Headlines have alternated between optimism and caution, often within the same quarter. For many owners considering a sale, this has created uncertainty — not about whether deals are happening, but about whether now is the right time.
The reality is more balanced than the headlines suggest. Transactions are completing and buyers are active. But this is not a market where everything sells easily. It is a selective environment, and understanding that distinction is critical.
A Market That Is Moving — Carefully
After a quieter period, deal activity has begun to recover. Global M&A volumes rose through 2025 following a subdued 2023–24, with mid-market transactions accounting for a growing share of completed deals. This improvement has been driven less by exuberance and more by pragmatism.
Buyers that paused during periods of uncertainty have not disappeared. Many remain well funded and under pressure to deploy capital, but they are doing so cautiously. At the same time, sellers have become more realistic — not only about valuation, but about preparation, structure and timelines.
The result is a market that is active, but disciplined.
Why Activity Is Returning
Several factors are contributing to renewed momentum:
• Pent-up buyer demand: Strategic acquirers and financial investors delayed acquisitions during volatile periods, rather than abandoning plans altogether.
• More realistic expectations: Valuation gaps that stalled deals in earlier cycles have narrowed.
• Better-prepared sellers: More owners are entering the market with professional advice, stronger financial information and a clearer understanding of buyer scrutiny.
• Improving deal confidence: While funding remains selective, transaction certainty has improved compared to the most restrictive periods.
This is not a return to a “sell at any cost” environment. Buyers remain selective, but they are active where fundamentals are strong.
A More Selective Market
Selectivity is the defining feature of today’s business sales market.
Buyers are placing greater emphasis on:
• the quality and sustainability of earnings
• management depth beyond the owner
• clear, explainable financial performance
• visibility of future growth
Businesses that demonstrate these characteristics continue to attract interest. Those that do not often struggle to progress beyond early discussions.
This does not mean the bar is unrealistically high. It does mean that preparation, positioning and process matter more than they did in more buoyant cycles.
Timing a Sale: Act Now, or Prepare?
One of the most common questions business owners ask is whether they should act now or wait for conditions to improve.
There is no universal answer — but there is a practical framework.
Some businesses are well positioned to move now: they have stable earnings, credible management teams and clear buyer appeal. In these cases, a controlled process can still generate competitive interest.
Others benefit from a period of preparation. A 12–18 month horizon can allow owners to strengthen management structures, improve reporting quality and address issues that buyers would otherwise price in or challenge.
Crucially, the decision should be proactive, not reactive. Waiting for a “perfect” market often leads to missed opportunities, while entering too early without preparation can undermine value.
What to Watch For in 2026 and Beyond
Several factors are likely to influence the pace and shape of business sales:
• Buyer confidence: Improved, but still sensitive to economic and political signals.
• Funding conditions: Traditional bank lending remains cautious, while alternative and private credit continue to support mid-market deals.
• Ongoing consolidation: Sectors such as professional services, healthcare, specialist manufacturing and technology-enabled businesses continue to attract buyer interest.
• Continued selectivity: Even if volumes increase, buyers are unlikely to relax their focus on quality.
Rather than signalling a sharp upswing or downturn, the outlook points to steady, opportunity-led activity.
How Knightsbridge Can Help
In a market like this, outcomes depend less on timing headlines and more on informed decision-making.
Knightsbridge works with business owners to:
• interpret market conditions in the context of their business
• assess readiness and timing
• position businesses clearly for the right buyers
• run structured, competitive processes that protect value and momentum
Whether an owner is considering an immediate sale or planning ahead, clarity and preparation are essential. In a selective market, the right advice can make the difference between hesitation and a successful transaction.