After a modest first half to the year, the M&A market saw activity strengthen over the summer. Both the number and, more notably, the value of deals increased as confidence began to return.

While there is still plenty for business owners to navigate, activity has settled back to roughly pre-pandemic levels. There remains no shortage of capital, with private equity funds and trade buyers both keen to invest, and lenders showing a renewed appetite for well-structured transactions.

Some sectors are receiving an extra lift from government spending, particularly renewable energy, data infrastructure and defence. These areas look set to underpin deal flow even if the wider economy remains sluggish.

Buyers are, however, more selective. Deals are taking longer to complete as investors dig deeper into fundamentals and management strength. For owners considering a sale, preparation remains key – and it’s often better to start while conditions are improving rather than wait for perfection.

As Jim Keeling notes in the October edition of UK Private Company Director, “Appetite for good companies is growing, and cautious confidence has replaced the hesitation we saw earlier in the year.”

Read the Q3 2025 edition of UK Private Company Director here.