UK SME M&A in August: volumes soften, trade buyers dominate
The latest MarktoMarket Valuation Barometer shows UK dealmaking slowed in August—very much in line with the usual summer lull—but the picture for SMEs carries some useful signals.
MarktoMarket has logged 339 UK deals so far, with the final tally expected to be around 404 once late reports are in. While activity always dips during holiday season, the buyer mix and sentiment indicators are worth noting.
Who’s buying?
For SME owners, the most important point is who is still active:
- Trade buyers drove 63% of all completions. These are typically competitors, suppliers, or customers looking for strategic fits.
- Private equity and PE-backed buyers represented 27%, showing that financial sponsors remain selective but present.
- Listed buyers made up the balance.
Why it matters: If you’re preparing to sell, the odds are highest that your buyer will be a trade acquirer with a synergy story—rather than a fund chasing multiples.
Valuations & sentiment
The UK Corporate Finance Confidence Index slipped to 48 in August (down from 58 in July). Anything below 50 signals more caution than optimism around deal volumes and valuations over the next 12 months.
Why it matters: Buyers are sharpening pencils. Expect more scrutiny of forecasts and more conservative offers unless your business has strong recurring revenue, defensive margins, or obvious strategic appeal.
Practical takeaways for SMEs
- Timing is key. August numbers always understate the market. September and October figures will give a clearer view, but seasonal slowdowns shouldn’t be mistaken for lack of appetite.
- Know your buyer. With trade at 63%, positioning your business as an attractive strategic fit is more important than ever.
- Preparation pays. In a market showing signs of caution, thorough preparation—clean accounts, clear growth story, and a well-managed process—makes the difference between “interest” and a competitive price.
About the data
MarktoMarket’s barometer blends public and proprietary sources. Figures are provisional and may be revised as late deals and disclosures come through. Enterprise values include deferred or contingent consideration where available.
If you’re considering a sale or acquisition in late 2025 or 2026, now is the time to prepare. We’d be happy to share how buyers are approaching SME deals today—and how best to position your business for them.
