27/01/2026
Insights
The UK business sales market in 2026 presents both challenges and opportunities. While domestic dealmaking experienced a subdued 2025, several factors are now creating momentum for buyers and sellers alike. Tax deadlines, shifting buyer profiles, and sector-specific pressures are all shaping how transactions will unfold this year.
Whether you are considering an acquisition or preparing to exit, understanding these dynamics will help you make informed decisions.
The current state of the UK business sales market
The UK entered 2026 with domestic M&A activity recovering from its weakest performance in nearly a decade. However, there are clear signs that conditions are improving, and several catalysts are driving renewed interest in business transactions.
Recent research indicates that over 60% of UK SME owners have considered exiting their company in the past 12 months, a figure higher than in any other European country. Yet only 42% of these owners have a clear exit strategy in place, highlighting a significant preparation gap that often determines whether a sale succeeds or fails.
It is also no secret that difficult economic periods have cast doubt on those considering takeovers, and existing owners may have experienced a downturn in profits due to rising operating costs and the cost-of-living crisis, leading to more considered consumer spending.
Who is buying UK businesses in 2026?
Overseas acquirers
Foreign buyers, particularly from the United States, continue to play a prominent role in UK M&A. Overseas acquirers accounted for nearly 40% of UK M&A value in 2025, with domestic dealmaking falling to its lowest level since 2016.
For sellers, this means the pool of potential buyers extends well beyond UK borders. Businesses with strong fundamentals, clear growth potential and professional financial records are well-placed to attract international interest.
Private equity
Private equity firms remain active participants in the market, though their motivations are evolving. Limited Partners are increasingly prioritising liquidity over long-term returns, which is driving both acquisitions and portfolio company disposals.
This dynamic creates opportunities on both sides of the transaction, with PE firms seeking quality investments while also bringing businesses to market.
Why are sellers exiting in 2026?
The motivations driving business owners to sell in 2026 are varied, though several themes are emerging prominently.
- Tax considerations, particularly the BADR deadline, are creating urgency for owners who wish to optimise their exit timing
- Retirement remains a consistent driver, with many owners reaching a stage where they are ready to step back and realise the value they have built
- Others are seeking to release equity to fund new ventures or simply recognise that their business may benefit from new ownership and fresh investment
Whatever the motivation, the common thread among successful sellers is preparation. Those who approach a sale with realistic expectations, organised financial records and a clear understanding of their business's value are significantly more likely to achieve a favourable outcome.
“2026 is shaping up to be a pivotal year for UK business owners, with tax changes and renewed buyer activity creating both urgency and opportunity. Those who prepare early and understand market dynamics will be best positioned to secure strong outcomes.”
Which sectors are presenting opportunities?
Growth sectors
Certain industries are attracting particularly strong buyer interest in 2026. These include:
- Technology businesses, especially those focused on artificial intelligence (AI) and data infrastructure
- Financial services
- Healthcare and pharmaceuticals
- Energy and utilities
- Defence-related companies
Businesses operating in these sectors may find a competitive buyer environment, which can support stronger valuations and more favourable deal terms.
Distressed industries
For buyers with appropriate expertise and risk appetite, elevated distress levels in certain sectors present acquisition opportunities at favourable valuations. Distress remains concentrated in the following sectors:
- Retail
- Leisure
- Hospitality
- Construction
- Real estate
Buyers considering distressed acquisitions should conduct thorough due diligence and work with advisers experienced in navigating these complex transactions.
How sellers can position themselves for success
If you are considering a sale in 2026, early preparation is essential. Begin by obtaining a professional valuation to understand what your business is worth in the current market. Ensure your financial records are accurate, up to date and clearly presented, as this is often the first thing prospective buyers will scrutinise.
Consider the tax implications of your timing, particularly if completing before the April BADR deadline is feasible. Work with experienced advisers who can help you prepare marketing materials, identify suitable buyers and negotiate terms that meet your objectives.
How buyers can position themselves for success
Prospective acquirers should begin by clarifying their acquisition criteria, including sector preferences, geographic considerations and budget. Understanding the dynamics of your target sectors will help you identify where opportunities lie and what due diligence will be required.
Ensure your financing is in place before approaching sellers, as demonstrating funding readiness can strengthen your position in negotiations. Consider working with advisers who have access to off-market opportunities and networks that extend to international buyers and sellers.
Navigate the 2026 market with expert support
Whether you are looking to buy or sell a business in 2026, having the right guidance can make a significant difference to your outcome. Our team brings decades of experience to every transaction, supporting clients from initial consultation through to completion.
We are authorised and regulated by the Financial Conduct Authority (FCA), and our advisers can assist with valuations, buyer matching, negotiations and the practicalities of managing a sale or acquisition.
To discuss your requirements, please call 0113 340 9840 or complete the form below to get started.
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