Positive Economic Signals Boost Business Acquisition Outlook

Inflation stabilises against expert predictions

Inflation figures released this week defied expectations, remaining stable when most economists had predicted a rise. This unexpected steadiness has increased the likelihood of the Bank of England cutting interest rates before the end of the year, potentially reducing borrowing costs for prospective business buyers.

Lower interest rates typically make financing more accessible, which can encourage acquisition activity across multiple sectors. For those considering purchasing a business, this could mean more favourable lending terms and improved cash flow management post-acquisition.

Business conditions show signs of improvement

A recent poll of purchasing managers at British firms has revealed that business conditions are "starting to improve" across the UK. This positive sentiment has been driven by an upturn in the service economy and the first expansion of manufacturing production in twelve months.

These developments suggest growing confidence among business leaders, which historically correlates with increased appetite for strategic acquisitions and investments. Companies that have weathered recent economic challenges may now be in a stronger position to pursue growth through acquisition.

What this means for business sales in 2026

The combination of stable inflation, potential interest rate cuts and improving business conditions creates a more positive outlook for the business sales market. We anticipate that this environment will encourage more firms to review their strategic plans for 2026, with acquisitions likely to feature prominently in growth strategies.

For sellers, this improved sentiment could translate into a larger pool of interested and financially capable buyers. For prospective owners, the conditions may present opportunities to acquire businesses at competitive valuations while benefiting from more favourable financing terms.

Director Matthew Brannon commented on the recent developments:

"The positive economic signals we are seeing create an encouraging backdrop for business acquisitions. While every transaction must be evaluated on its own merits, the improving conditions and potential for lower borrowing costs could make 2026 an active year for business sales across multiple sectors."

Planning your business acquisition or sale

Whether you are considering buying or selling a business, understanding market conditions is just one aspect of a successful transaction. Our team provides comprehensive support throughout the entire process, from initial valuations to final completion.

If you are ready to explore your options or would like to discuss how current market conditions might affect your plans, please use the form below or call 0113 340 9840 to arrange a consultation.