Selling a Business in 2026: What UK Buyers Actually Want

Selling a Business in 2026: What UK Buyers Actually Want
2026 is proving to be a significant year for M&A activity, with a notable shift in the conversations taking place between business owners, investors and acquirers with regard to strategy.
Aligned to this there has been a 12% rise in the aggregate value of UK M&A activity to £131bn (source: PWC), with a strong appetite for high-quality UK businesses across many sectors, from Private Equity houses, trade/strategic buyers and financial investors still actively looking for opportunities.
Significantly, the average deal size increased by 28 percent, with interest rates and reducing inflation adding further impetus to buyside intent and activity. As a result, many informed business owners are beginning to prepare and position themselves, well ahead of any formal sale process.
What buyers are seeking
According to commentators ‘quality businesses’ are in high demand and attracting serious acquisition interest (source: PWC). Below we assess some of the key criteria credible proactive buyers are currently seeking:
- Recurring/Predictable Revenue
Businesses with strong levels of recurring or repeat revenue continue to attract significant interest.
Buyers place considerable value on visibility and predictability of earnings, particularly in uncertain economic conditions. Long-term contracts, retained clients, subscription models and recurring service revenues can all contribute positively to valuation and deal confidence.
- Strong/capable Second Tier Management
Businesses where knowledge, relationships and operational control sit too heavily with the owners can indicate significant risk in the mind of the acquirer. Often companies with heavy owner-reliance see potentially reduced deal values/sale prices.
In contrast, companies with capable second-tier management teams, delegated responsibilities and operational maturity are often viewed as highly attractive, commanding higher deal values.
This does not mean founders need to step away from their business before considering a sale. However, demonstrating that the business can continue to perform and grow beyond the founder is increasingly important.
- Clean Financial Reporting and Visibility
As the old adage goes, Turnover is vanity, Profit is sanity, Cash is king! Yet cash generative businesses with poor financial controls and reporting frequently encounter difficulties when attempting a sale.
Decent internal systems and accurate financial reporting is one of the clearest indicators of a well-managed business. Businesses with strong reporting disciplines often progress through due diligence more efficiently and with fewer challenges later in the process.
- Strong/Growing Market Sector
Market sectors offering strong growth and good earnings potential naturally attract investment and higher levels of M&A activity. Commentators are highlighting TMT, financial services, energy infrastructure, and healthcare as key active sectors in 2026 (source: PWC).
As a sector agnostic advisor, the EvolutionCBS deal team continues to see strong interest in a wide range of sectors, including fire safety, consultancy, B2B product supply, engineering and specialised manufacturing.
Crucially, companies with a defensible sustainable growth potential, market position, strong client relationships, and technical expertise/differentiated capabilities in these sectors.
Preparation is key
For business owners considering a sale preparedness is essential. One of the biggest misconceptions around business sales is that preparation only becomes relevant once an owner has decided to sell.
In reality, the opposite is often true. The businesses that achieve the strongest outcomes are frequently those that have spent time preparing well in advance: strengthening management structures, focused on growth and cash generation, reducing risk and understanding how buyers may view the business.
Being well prepared will not only creates options for owners, but allows shareholders to make decisions from a position of strength rather than pressure.
Thinking about selling in the next few years?
Join our exclusive masterclass, **Pole Position: Preparing Your Business for Sale**, and discover what buyers are really looking for, how to maximise value, and the steps you can take now to improve your outcome when the time comes.
Learn more and book your place HERE
At EvolutionCBS, we work closely with owner-managed businesses to help them understand how the market may view their business today, where value can potentially be strengthened, and how future strategic options may evolve over time.
Whether a shareholder is considering a sale in the short term or simply beginning to think more strategically about the future, early preparation can have a significant impact on long-term outcomes.
To discuss valuation, readiness or future strategic planning in confidence, please contact us.









