M&A Market Update for Business Owners in the SME Market
If you’re a business owner planning your exit in the next few years, understanding the current M&A landscape is vital. At Entrepreneurs Hub, we keep a close eye on the market so you can plan ahead with confidence.
The State of the Market
As we move through the second half of the year, M&A activity in the UK remains resilient despite wider economic uncertainty. Inflation continues to bite, and interest rates are only edging down cautiously. Yet buyer appetite is strong.
Internationally, borrowing is cheaper in Europe and the US. Combine this with cash-rich corporate balance sheets, favourable exchange rates, and a global trust in “Brand Britain”, and the UK is proving an attractive hunting ground for overseas acquirers.
In short, while financing isn’t cheap, there are plenty of determined buyers – in fact, more buyers than sellers. For owners considering an exit, that imbalance is worth noting.
How the M&A Marketplace Has Evolved
M&A is no longer the preserve of the corporate giants. It has become a mainstream strategy for ambitious growth. Where once businesses relied on organic expansion through sales and marketing, acquisitions now form a central plank of growth strategy.
Why? Because acquisitions accelerate progress. They allow buyers to:
- Establish a foothold in new markets or geographies
- Instantly gain products, technology, and expertise
- Secure logistics, credit lines, and vital talent
In contrast, organic growth can be slow, unpredictable, and resource-intensive.
Who’s Buying?
Family Wealth Offices
Family offices are increasingly active. Many are diversifying portfolios, spreading risk, and securing international market coverage. Asian family offices, in particular, are showing growing interest in UK SMEs. These buyers often favour long-term “buy and hold” strategies, making them attractive partners for founders seeking stability post-exit.
Private Equity and Private Capital
Private equity remains a strong force. But a new breed of smaller private capital players is shaking up the market. Often led by experienced dealmakers, these agile acquirers are targeting owner-managed SMEs with a view to building value through “buy and build” strategies.
They bring fresh energy to the sector, though deals can involve more complex funding structures and rigorous due diligence. For sellers, this means more opportunity, but also the need for expert guidance in navigating negotiations.
What This Means for Business Owners
For many family business owners, the timing looks favourable. Whether your goal is to:
- Unlock value for retirement
- Realise wealth tied up in the business
- Position your company as part of a larger, faster-growing group
…the current environment offers strong buyer appetite and competitive interest.
With an autumn budget looming and the potential for higher taxes on the horizon, acting sooner rather than later could prove financially advantageous. Lower tax rates today make business disposal an even more attractive option for those thinking of exiting in the next 1–3 years.
Final Thoughts
The UK M&A market is dynamic, diverse, and full of opportunity. For sellers, the challenge is not whether buyers exist – they do – but how to prepare your business to secure the best outcome.
At Entrepreneurs Hub, we specialise in helping SME owners like you maximise growth, polish performance, and position your company for a premium sale. If you’re thinking about an exit in the next few years, now is the time to start preparing.
Your life’s work deserves more than just a transaction – it deserves the right exit.
Ready to Start Planning Your Exit?
Selling a business is one of the most significant milestones in a founder’s life. The decisions you make today will shape your wealth, your legacy, and your future.
At Entrepreneurs Hub, we’ve guided countless business owners through this journey – from building value ahead of sale, to negotiating with the right buyers, to securing deals that truly reflect the blood, sweat, and tears invested over decades.
Whether you plan to sell in the next 12 months or three years from now, the best time to prepare is now. We’d love to have a confidential, no-obligation call with you to help you:
- Benchmark your business against current market expectations
- Identify opportunities to enhance value before sale
- Explore the most active buyer groups for companies like yours
Your exit deserves expert guidance. Let us show you how to achieve it.
Are you a business owner looking to sell your company?
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FAQs – Selling your company
How do I sell my business?
At Entrepreneurs Hub, we talk about five key areas that make the difference between success and failure when selling your business. Read more…
How much can I sell my business for?
Determining your business’s value is more than just calculating a number it’s complex with key factors, that said the basic equation is actually quite simple. Read more…
How long does it take to sell my business?
The timeline varies depending on the complexity of the deal and how ready the business is for sale. On average, the process takes around twelve months – sometimes less, sometimes more.
While preparing your business for sale, Entrepreneurs Hub conducts in-depth research to identify potential acquirers. You’ll have the opportunity to review and approve this list before we make any approaches. Once the business is fully prepared – often the most time-consuming step, we begin marketing it. Typically, you’ll start seeing initial interest within a few months, with follow-up meetings happening shortly after.
As these meetings progress – coordinated and facilitated by Entrepreneurs Hub, you’ll begin receiving initial offers. At this stage, we’ll help you assess the strategic fit between your business and potential buyers. When you decide to move forward with an offer, an exclusivity period begins, during which the acquirer conducts Due Diligence (DD).
The DD phase typically lasts two to three months, depending on the complexity of your business. Once complete, the sale is finalised, and you’ve successfully sold your company.
How do I sell my business quickly?
Selling a business quickly is possible, but speed shouldn’t come at the expense of value or deal security Read more…
When is the best time to sell?
Selling your business is a major milestone, and the start of an exciting new chapter, whether that means new ventures or a well-earned retirement.
In our experience, the best time to sell is when you don’t need to – when your business is performing well – not necessarily tied to the calendar. That said, timing can still play a role.
Timing the Market
Strong economic conditions, sector growth, and buyer confidence boost valuations. Don’t wait for a “perfect” market – a well-prepared, well-performing business sells in any climate.
Plan Ahead (12–18 Months)
The best outcomes come from early planning: clean financials, solid forecasting and growth potential.
Spring & Autumn Are Active Periods
The M&A market is typically busier in spring and autumn while summer and winter tend to be slower due to holidays and year-end distractions. However, the unpredictability of deals and negotiations makes this hard to target. We do deals all throughout the year – the key is to work with someone who can keep driving the deal forward whenever it happens.
Financial Year- End
Selling your business well is a long process and aiming for your financial year-end milestone is a virtually impossible task. But it is worth bearing your financial year in mind as buyers will want to review the most up-to-date accounts available.
The best time to sell is when your business is ready, and you are too. With the right preparation and positioning the right timing follows naturally.
Can I sell my business online?
Yes, you absolutely can sell a business online. Many platforms specialise in connecting business sellers with buyers. Read more…