In 2025, UK business owners are confidently navigating their way through an active M&A market – with sell-side success on the rise.

Following years of challenges and economic uncertainties – especially in the wake of the global pandemic and Brexit - UK business owners are finally seeing the M&A market turning a positive corner.

As confidence returns after numerous challenging times, business owners are once again focusing on long-term growth and exit planning - with increased activity in the mid-market and a rise in successful M&A transaction completions.

In this article, we explore key M&A UK trends based on research conducted by MarktoMarket, what buyers are looking for in 2025 and what to avoid for a successful deal completion. We will also explore the best time your business should start preparing for a deal, your business’s true worth and how GS Verde Group can help your business navigate the M&A market with clarity and confidence for long-term success.

UK M&A Trends and Data Analysis

According to an analysis of H1 2024 M&A Indices, conducted and published by MarktoMarket in July 2024, the first half of 2024 formed an M&A market that demonstrated structure and discipline - which set the precedence for 2025.

In 2024, the UK M&A sector saw a steady volume of deals, aligned price expectations and buyers and sellers benefiting from a more informed approach to business valuation.

MarktoMarket’s analysis shows that, in 2024, there was a median enterprise value/EBITDA multiple of 6.0x and a median deal size of £7.5 million – with the UK M&A landscape showing stability, a healthy competitive edge and advantageous opportunities for UK business owners planning ahead for success.

As a result, this set a positive tone for 2025 with the M&A market currently demonstrating a more evolved deal environment creating:

• Better-prepared sellers
• More focused buyers
• A growth in professionalism across all stages of a transaction

Based on these 2024 analytics and the outlook for the M&A market in 2025 and beyond, UK business owners are seen to be financially, legally, and strategically ready for growth as well as attracting investor interest and achieving strong results.

Key UK M&A trends include:

• Stable valuations: With figures in 2024 showing multiples at 6.0x, business owners are benchmarking their valuations more confidently in 2025
• Improved alignment between buyer and seller: The UK is seeing valuation gaps narrowing in 2025 due to stronger data and more realistic M&A market expectations
• Buyers focusing on quality: With due diligence tighter in 2025, UK buyers are now spending more time with fewer targets - with the best-prepared businesses rising to the top.

How to Attract Buyers for Your Business

Business objectives and goals are different for every business, with one business looking for a trade acquirer and another looking for private equity investors to achieve their long-term success.

With a wide variety of options available for growth in 2025, UK buyers have an expectation of businesses being investment-ready ahead of the transaction process - especially in the areas of performance, presentation and process.

This includes:

• Earnings visibility: Buyers want to see sellers have consistent EBITDA figures, and recurring revenue
• Scalability: Buyers are seeking companies with a strong growth platform and scalable operational systems.
• Management depth: It is important for business owners to demonstrate leadership continuity plans to avoid perceived risk.
• Clean compliance and governance: With due diligence being a key stage in the M&A process, buyers want to invest in a business without documentation gaps, hidden liabilities and unstructured finances.

Overcoming Challenges for Long-Term Success

Despite improved conditions in the M&A market in 2025, there are many challenges that businesses need to overcome in the UK mid-market.

By conducting thorough preparation ahead of time to ensure successful transactions, businesses need to avoid:

• Mismatching Valuations: Ensuring valuation figures match correctly will prevent unrealistic expectations and barriers when closing a deal.
• Underprepared documentation: Conducting thorough and accurate due diligence will avoid delaying the process and lowering a buyer’s confidence.
• Lack of exit strategy: Buyers want to see businesses with strong exit strategies, as this helps avoid concerns around succession or leadership continuity
• Mid-deal developments: Being prepared for market and regulatory developments mid-way through the deal process means avoiding momentum disruption

Why Early Preparation Ensures M&A success

Preparing your business exit early is the key to success for any company, with the best time to start preparing being 12 to 36 months in advance.

Having this timeframe and window of opportunity to prepare for a successful M&A deal gives business owners the chance to:

• Identify and improve revenue, recurring income and customer concentration
• Improve operational systems and reporting
• Resolve any legal or structural issues within the business
• Make any necessary improvements to the business’s tax efficiency position

Discovering Your Business’s True Worth

By preparing for your M&A deal early in advance, you will discover and gain a clearer understanding of your business’s true worth through accurate valuation.

The valuation stage of a transaction unveils a business’s revenue or profit, which is shaped by:

• Growth potential
• EBITDA quality and consistency
• Scalability and operational maturity
• Observation of potential risks or dependencies
• Market positioning and sector performance

How GS Verde Group supports M&A Deal Navigation

At GS Verde Group, we measure every business against real-time market data to deliver accurate, meaningful valuations according to the current M&A market.

Unlike other advisory firms, we deliver all key M&A transaction services under one roof - with an integrated and multi-discipline team of legal, finance, tax, accountancy and communications experts working seamlessly together to deliver effective end-to-end services to our clients.

With a strong ‘One Team’ approach, we specialise in helping ambitious business owners plan and execute successful M&A transactions - from trade sales, private equity investments to management buyouts and employee ownership trusts.

We support our clients by:

• Assessing their value using real-time deal data and helping them understand the true worth of their business
• Building financial forecasts, legal documentation and investment presentations in preparation for a buyer.
• Optimising structure and tax efficiency to create a commercially and financially solid transaction
• Engaging with the right buyers for the business by leveraging our sector-specific outreach tools and networks

Expert Advice from GS Verde Group

At GS Verde Group, we know that preparation and positioning is the key to a successful deal in the M&A market – particularly in 2025 where the market is filled with advantageous opportunities for growth. That’s why we don’t just help your business go to market, we also help your business become its best version to ensure successful outcomes and longevity.

Whether it be seeking advice on the best exit strategy to executing the deal process with precision, we help you every step of the way and ensure every stage of the transaction meets the needs of your business.

If you are planning an exit, raising investment, or exploring strategic growth for your business, choose GS Verde Group for an integrated team of M&A expertise to help you discover the best exit options for your business and deliver successful results for the future.