UK M&A Ends 2025 on a Resilient Note – Key Takeaways from the Latest Valuation Data
As 2025 drew to a close, many advisers and business owners expected UK M&A activity to tail off sharply. However, the latest January 2026 Valuation Barometer from MarktoMarket suggests the market finished the year in better shape than sentiment alone might imply.
Deal volumes: steady rather than spectacular
MarktoMarket reports 392 UK deals announced in December 2025, with an estimated final count of almost 465 transactions once late disclosures are included. That puts activity broadly in line with recent months and slightly ahead of December 2024 on a year-on-year basis.
In a market still adjusting to higher interest rates, longer deal timelines, and more rigorous due diligence, this level of activity points to underlying resilience rather than exuberance.
Trade buyers continue to dominate
One of the most notable data points is buyer composition. Trade buyers accounted for 63% of UK deals in December, with private equity and PE-backed buyers making up roughly 25%.
This matters for owner-managed businesses. Strategic buyers often:
- Place greater value on operational synergies
- Are willing to look beyond headline multiples
- Focus heavily on integration and long-term fit
For well-run SMEs, this can create compelling opportunities even when financial buyers are more cautious.
Confidence has softened – but not collapsed
The MarktoMarket UK Corporate Finance Confidence Index slipped to 48 in December, down from the high-50s seen earlier in the year. A reading below 50 suggests a modestly cautious outlook, not a market in retreat.
In practical terms, this reflects what many advisers are seeing:
- Buyers are active but selective
- Funding is available, but structures matter
- Weak businesses struggle; strong ones still attract interest
What this means for business owners
The key takeaway is not about trying to “time” the market. Instead, it’s about being ready.
In this environment, outcomes are increasingly driven by:
- Quality and sustainability of earnings
- Cash flow visibility
- Clear equity story and strategic logic
Businesses that prepare early tend to transact better, faster, and on more favourable terms than those reacting late to market conditions.
At Branta, we use market data like this not as a sales tool, but as a way to help clients make informed, evidence-based decisions about their next move – whether that’s a sale, acquisition, or financing event.
