Private company M&A got off to a slow start this year, despite signs of life in some of the larger deals. In the July issue of UK Private Company Director, Jim Keeling shares his view on what’s holding the market back and where the next opportunities may come from.

Few foresaw the scale of the escalation between Israel and Iran at the start of the year, let alone direct involvement from the US. A fresh round of tariffs has added further uncertainty to the global picture. But it’s been domestic pressures – notably rising UK taxes and the prospect of more to come – that have led many business owners to pause and reassess.

Still, it’s not all bad news. Cooling inflation and weak growth raise the likelihood of interest rate cuts, which could encourage investment. And the combined impact of tariffs and increased defence spending across Europe is already creating significant long-term growth opportunities in several industries.

Most importantly, there’s no shortage of capital. UK private equity firms have an estimated £190 billion to invest over the next few years, according to the British Private Equity & Venture Capital Association. That’s a lot of dry powder.

As Jim writes, “If greater caution is taking us back to proper, well-structured deal processes, that should benefit all parties in the long run.”

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