In 2025, the UK M&A market is seeing healthy deal completions, alongside rising confidence among corporate financial experts navigating them.

With M&A transactions involving valuation multiples, understanding the meaning behind these numbers and gaining insights from corporate financial experts on the market’s future is essential for business preparation and growth.

In this Shared Insight article - which follows on from our previous articles where we looked at high-performing M&A sectors in 2025, buyer behaviour and M&A deal influences in 2025 and how UK businesses can achieve cross-border transaction success – we examine MarktoMarket's July ‘UK M&A Valuation Barometer’ report further by exploring Corporate Finance Confidence Index (CFCI) trends for the UK M&A market.

We will provide insight into the meaning of CFCI, its measures and what the latest data shows from the report. We will also explore why the data matters for UK business owners regarding sales, how to strengthen your position in a cautious M&A market and how GS Verde Group supports clients to achieve strong outcomes when it comes to corporate finance.

The Corporate Finance Confidence Index

MarktoMarket’s insightful report, published monthly, includes a Corporate Finance Confidence Index (CFCI) that enables financial experts to track confidence in deal volumes in the UK M&A market – and helps business owners determine whether M&A activity and valuations are likely to rise, fall, or stabilise.

This index is a valuable tool for business owners, as this helps them navigate the market and especially if they are planning a business exit, investment raise, or pursuing avenues of future growth. It also aids them in determining how competitive the market is and guides them regarding achievable valuations.

For business owners considering the best path to take to secure their legacy, the monthly CFCI helps build a bigger picture by showcasing the expectations of surveyed corporate finance advisory experts through a 12-month forecast of the UK M&A market.

The process of creating the CFCI includes:

• Gathering thoughts and expectations from respondents on deal volumes and valuations for the following 12 months
• Their answers are then analysed and averaged into an index between 0 and 100. Scores above 50 mean overall confidence in the market improving, 50 on the scale being a neutral determination of a steady market and expectations below 50 on the scale demonstrates caution and an expected decline in the market.

The Index is important for business owners as it helps to determine how the market is performing and provides confidence ahead of a corporate transaction - particularly as the CFCI is built on the insight of financial experts.

The role of the Index is to show business owners:

• The optimism and caution that acquirers are likely to have in the current market as well as how much they are willing to pay.
• A forecast demonstrating how competitive deal processes might be ahead of transactions.
• How potential risks and shifting trends can shape valuations, deal structures, and timelines.

What the Index Data Reveals

MarktoMarket’s report examines deals from the mid-2024 to the first half of 2025, as Q1 and Q2 of 2025 saw notable volatility when it comes to corporate finance confidence.

The report highlights the following:

• Mid-2024: Deal activity during this time had a score between 60 and 65 on the Index which demonstrated optimism.
• March 2025: In March 2025, confidence dropped to 49, marking the beginning of a more cautious Q2
• April 2025: Due to various factors that cast a cautious outlook on the market, including inflation and interest rate uncertainties, the index dropped to a score of 45
• May 2025: May 2025 showed an incline with an Index score of 46 – showing a cautious yet promising outlook.
• June 2025: The M&A market recorded an index confidence score of 52, ending Q2 2025 with optimism ahead

Based on this information from the last 12 months, business owners can see that:

• There is resilience in the UK mid-market as there are numerous successful deal completions especially during times of caution
• Confidence and optimism are key for dealmakers when navigating through the M&A market
• There are promising times ahead, with the Index scoring for June 2025 demonstrating to dealmakers that recovery is underway and the market is finding its feet

Why This Matters for UK Business Owners

As a business owner, having strong confidence levels is essential. Not only does it enhance your opportunities for future growth, but it also influences the behaviour of buyers – which determines the success of corporate transactions.

For UK sellers, the implications of confidence levels from buyers are significant due to:

• Valuation pressure: When confidence levels are low, buyers will be cautious to stretch multiples and instead focus on businesses that offer security
• Selectivity: Lower confidence levels can encourage acquirers to seek businesses with proven track record of scalability and recurring revenues
• Negotiation dynamics: Buyers may prefer deferred consideration and protections for long-term security
• Deal speed: Low confidence levels can often bring transaction delays as buyers conduct thorough due diligence

As seen on the report, 2025 shows promising signs of improved buyer confidence in the M&A market, clearly demonstrating:

• More buyers will enter the market seeking growth opportunities
• An increase of healthy competition for quality and stable businesses
• Sellers conducting early preparation to achieve premium multiples

How to Strengthen Your Position in a Cautious Market

Even though the UK M&A market is seeing buyer confidence improving in 2025, it’s key that UK businesses owners considering selling take valuable steps to reassure buyers, increase confidence levels and stand out in a competitive market.

These steps can include:

• Valuation Benchmarking: By comparing your business against real-time sector multiples, your business can set credible expectations and realistic pricing
• Governance and Compliance: Ensuring your business enters a deal negotiation with healthy financials and regulatory compliance to avoid diligence risks
• Showing Resilience: Building trust with buyers to show your business can overcome challenges, including rising costs or supply chain issues
• Scalability Proof: Highlight that your business is scalable across all areas, such as operations, to appear attractive to buyers
• Compelling Narrative: Position your business as innovative with ESG credentials to attract buyers and demonstrate your business’s mission, values and goals.

By following these steps to further attract buyers to your business, you will be strengthening your company’s negotiation leverage and securing valuations that reflect long-term potential.

How GS Verde Group Supports Clients

At GS Verde Group, we know that positioning your UK business as an attractive growth opportunity for buyers is essential to boost confidence levels. That’s why, as a multi-discipline advisory team, we use historic deal data and forward-looking sentiment measures - such as the Corporate Finance Confidence Index - to help our clients achieve seamless M&A transactions and successful outcomes.

Our in-house team of legal, corporate finance, tax, accountancy, and communications experts work seamlessly under one roof to get the best results for business owners across the UK and Ireland regarding confidence levels in the M&A market.

With a ‘one team’ approach, we support business owners by:

• Benchmarking valuations against current multiples and forecast expectations
• Preparing for due diligence ahead of potential scrutiny in a cautious market
• Identifying and approaching active buyers and investors
• Creating thorough deal structures that encourage long-term value

Expert Advice from GS Verde Group

At GS Verde Group, we believe that while the data from MarktoMarket’s July report shows confidence levels improving in 2025, it’s important for UK business owners to conduct early and thorough preparation for successful outcomes.

As an award-winning multi-discipline advisory firm, we help business owners navigate the dynamic M&A market with clarity and confidence. By choosing GS Verde Group for your acquisition journey, we will deliver real and effective results to ensure your business is strategically positioned to attract buyer confidence for long-term success.