Who’s Buying UK Businesses in 2025? A Mid-Year Look at the M&A Landscape
Chris Ray • 24 July 2025
Analysing the buyers, sectors and surprises shaping UK M&A activity in H1 2025
MarktoMarket has today released its H1 analysis of the UK M&A market, providing fresh insight into buyer behaviour, sector trends, and the evolving dynamics of SME dealmaking. At Branta, we’ve taken a deep dive into the data to bring you the headlines that matter and what they mean for UK business owners.
From surging nursery acquisitions to the surprising rise of garden centre buyers (yes, really), the first half of 2025 has been anything but dull. Whether you’re thinking of selling, raising investment, or simply curious about who’s buying what, this mid-year update should be essential reading.
Deal Volumes Are Holding Strong
Total deal volumes involving UK target companies remain robust. After a surge to 2,645 deals in H2 2024 (partially attributed to pre-budget activity in October), H1 2025 settled at a solid 2,272 transactions. This marks a return to the more consistent rhythm we’ve seen since early 2023.
| Period | Deal Volumes |
|---|---|
| H1 2023 | 2,215 |
| H2 2023 | 2,066 |
| H1 2024 | 2,207 |
| H2 2024 | 2,645 (the Labour Government spike) |
| H1 2025 | 2,272 |
Importantly, this shows buyers haven’t lost their appetite despite economic headwinds and regulatory changes.
The Big Names Doing the Buying
Across the top-20 acquirers of UK businesses in H1 2025, private equity-backed buyers continue to dominate, making up 70% of the list. Key recurring players include:
- Perspective – backed by Charlesbank
- Punch Pubs – backed by Fortress Investment Group
- Finli Group – backed by JC Flowers
- Söderberg & Partners, Zenotonin, and BK Plus – all consistently active
Notably, Clifton Asset Management – backed by CBPE – has surged into the top-20 this year, with six acquisitions following its backing in 2024.
Only one pure-play PE house, BGF, made it into the top-20, showing that most activity is from PE-backed trading companies rather than direct investments.
A Shift in Buyer Type in the Top-100
While PE-backed firms dominate the top-20, the top-100 buyers paint a broader picture:
| Buyer Type | Proportion |
|---|---|
| Private Equity-backed buyers | 48% |
| Listed & Trade Buyers | 40% |
| Other | 12% |
This is a significant change from 2024, when PE-backed firms made up 50% of the top-100 and listed/trade firms were just 38%. That shift suggests a growing role for publicly listed companies and strategic trade buyers in UK M&A.
Nursery M&A: A Sector in Full Bloom
One of the biggest sector stories of the year is the explosion in childrens nursery deal volumes. From just 18–21 deals per half-year in 2023, we’ve seen:
| Period | Deal Volume |
|---|---|
| H1 2024 | 44 |
| H2 2024 | 46 |
| H1 2025 | 61 |
Why the boom? Likely driven by a combination of increasing wage costs, consolidation pressures, and strong PE interest.
Notable nursery acquirers in H1 2025 include:
- Kids Planet (BGF, Fremman Capital)
- Toots Day Nursery (Westbrook)
- Busy Bees (Ontario Teachers’ Pension Plan)
- Partou, Bright Horizons, and Inspired Education Group
In particular, Toots Day Nursery has emerged as a fast-growing contender, following a 2023 investment and raising £4.57m in January 2025. They’ve already made five acquisitions this year, and more are likely.
Kids Planet, the sector’s benchmark, grew from a £10m valuation in 2016 to £92m by 2021, and has completed 75 acquisitions to date.
Garden Centres: Yes, Really
A surprising entrant to the M&A spotlight in H1 2025 is the gardening sector. The collapse and restructure of Dobbies Garden Centres triggered a wave of acquisitions.
Top Garden Centre Buyers:
All are trade buyers – no PE funds involved here. That makes this a rare case of consolidation without financial engineering. Blue Diamond alone has done 15 deals.
Corporate Compounders on the Rise
A fascinating trend in the industrials sector is the emergence of “corporate compounders” – firms building long-term portfolios of industrial businesses without the usual PE exit horizons.
Leading examples:
- n-Industries – acquired three industrial businesses in H1 2025
- Teqnion – listed Swedish group acquiring in the UK
- Lifco, Indutrade, PHD Industrial Holdings – Nordic-style compounders now active in the UK
These buyers typically maintain brand identity, operate with decentralised models, and offer long-term ownership – a strong alternative for owner-managed businesses looking for a soft exit.
The US is Back – and They’re Hungry
US buyers continue to dominate the international acquisition landscape in the UK, particularly in software, logistics, energy, and professional services.
Active US Acquirers Include:
- LemFi – payments
- Emerald – events/media
- Crisp – analytics
- Herspiegel – pharma consulting
- Kaleris – supply chain software (backed by Accel-KKR)
- Univar Solutions – chemicals (backed by Apollo)
Big names like TA Associates, Apollo, and Knighthead Capital are also moving in on UK assets.
Conclusion: What Does This Mean for You?
If you’re a UK SME owner, the takeaway is clear: there is still strong, diverse buyer appetite for well-run UK businesses.
- Private equity is alive and well.
- Strategic trade buyers are increasingly stepping up.
- International and sector-specific buyers (like nurseries and garden centres) are highly active.
- Deal volumes are stable, if not growing, in many sectors.
Now is as good a time as any to start thinking seriously about your long-term plans. And who might be interested in helping you realise them.
Self-Test: Is Your Business Prepared for a Buyer?
- Would your business be attractive to a PE-backed trade acquirer?
- Do you operate in a consolidating sector e.g. childcare, accountancy, wealth management?
- Is your financial performance robust enough to withstand diligence from a sophisticated buyer?
- Could you articulate a growth plan or M&A strategy to a strategic acquirer or compounder?
If you answered “not sure” or “no” to any of these, it’s worth having a confidential chat with us.
Final Thoughts
At Branta, we work with owners of SMEs (£1m–£10m turnover) across the UK to help them understand the buyer landscape, prepare for exit, raise funding, or evaluate strategic options. If you’d like to know more about who might want to buy your business, we’re here to help.
📞 Book a confidential chat with Branta here – no cost, no pressure, just clarity.
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Let’s break it down and look at what’s driving the numbers — and what it could mean for your business. 🇺🇸 US: Trump’s Tariff Tensions Rattle the Fed The US Dollar Index remains above 104, showing sustained strength. But behind that steady number is a volatile political situation. President Trump’s proposed reciprocal tariffs — set for an announcement by 2 April — have markets guessing. Will it be a broad-based tariff hike? Or something more targeted? He hinted at “flexibility”, but few are reassured. The Federal Reserve, understandably, seems as baffled as the rest of us. Fed Chair Jerome Powell admitted: “It’s just… really hard to know how this is going to work out.” The Fed’s main concern? That trade tensions will fuel inflation while weakening growth — a nasty combination that’s difficult to manage with interest rate policy. They’ve cautioned that sudden shifts in market sentiment could spook global capital flows. 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Her message was blunt: there would be a short-term hit to output, but inflationary effects wouldn’t last — meaning the ECB sees little reason to raise interest rates in response. ECB board member de Galhau even suggested they may cut rates further , underlining the different trajectory compared to the US. Key Data This Week: Eurozone PMIs: Watch for business confidence across France, Germany, and the broader region. Inflation: France and Spain will report this week. Germany’s IFO and unemployment data will offer further insight into Europe’s industrial powerhouse. What this means for SMEs: If you rely on imports from the EU — or sell into it — the falling Euro could impact your pricing models. It’s also worth keeping an eye on sentiment: lower confidence in Germany often sets the tone for wider EU demand. What Should UK Business Owners Do Now? FX movements often feel like background noise — until they hit your bottom line. 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Think of this series as your Monday “heads-up” — a quick scan of what’s happening around the world, and how it might ripple through to your business here in the UK. If you’d like to speak to us about FX strategy, hedging options, or broader financial planning, we’re always here to help.
Foreign exchange (FX) is an essential part of doing business internationally, but for many SMEs, it’s also a source of unnecessary cost and risk. Many businesses assume they’re getting a good deal from their bank or FX provider, without realising that hidden fees, unpredictable margins, and inflexible contracts could be eating into their profits. At Branta, we help SMEs take control of their FX strategy—reducing costs, improving certainty, and freeing up working capital. This article explores the common pitfalls of FX transactions and how businesses can optimise their currency dealings for better financial outcomes. The Problem: Hidden Costs and Missed Opportunities in FX Most SMEs don’t have full visibility over the costs of their FX transactions. A key driver of these costs is the dealer profit margin —the amount added to the exchange rate by banks and brokers before they sell currency to you. Many FX providers vary this margin from transaction to transaction , making it difficult to predict costs. This margin is technically known as the spread —the difference between the price at which they buy currency and the price at which they sell it to you. For example: If the market exchange rate for GBP/USD is $1.22 and your bank sells you USD at $1.18 , the difference ( $0.04 per £1 exchanged ) is the spread . That may not seem like much, but on a £100,000 trade , this difference amounts to £3,389 in additional cost . Beyond spreads, many businesses also pay: Deposit requirements for forward contracts – Many providers demand an upfront deposit (5-10% of the total trade) to secure a future exchange rate, tying up cash unnecessarily. Foreign payment fees – Banks often charge between £10-£25 per international transaction , which adds up over time. Lack of FX strategy support – Many businesses make FX decisions without expert guidance, leading to higher costs and increased risk. These hidden costs can result in thousands of pounds in unnecessary FX expenses every year . The Solution: A Smarter FX Strategy At Branta, we help businesses improve cash levels by fixing dealer margins , eliminating fees , and introducing strategic FX planning . Here’s how: 1. Securing a Fixed, Narrower Margin on FX Transactions Rather than accepting fluctuating FX costs, businesses can fix a transparent , lower dealer margin , ensuring they always know what they’re paying. Client Case Study: UK Food Manufacturer Our client was unknowingly paying dealer margins ranging from 0.5% to 2% , meaning the cost of their FX transactions varied unpredictably. By securing a fixed , lower margin , they gained certainty over their FX costs and eliminated unnecessary price fluctuations. client Example: Consumable Product Manufacturer Using a High Street Bank for FX Our client assumed they were getting competitive rates by booking FX directly with their high-street bank. However, an analysis of their trade confirmations revealed they were overpaying by £10,000–£15,000 per year due to inconsistent margins. By switching to a provider offering fixed , lower FX margins , they locked in certainty and improved their profit margins. 2. Zero-Deposit Forward Contracts Many businesses use forward contracts to protect against currency fluctuations by locking in an exchange rate for future payments. However, most FX providers require an upfront deposit (often 5-10%), which can tie up tens of thousands of pounds in working capital . Client Example: £500,000 Forward Contract Facility Our client needed to secure USD payments for their suppliers. Their previous provider required a 3% deposit on forward contracts , meaning £15,000 was locked up unnecessarily. By switching to a zero-deposit forward contract , they freed up this cash while still protecting their future FX rates. Client Case Study: Importer Making USD Payments A business making USD payments 2-3 times per year was using a major bank that charged a 3% dealer margin plus a £25 settlement fee per transaction . For a $50,000 purchase , they were paying: Bank rate at $1.18 = £42,372 Alternative provider rate at $1.21 = £41,322 By switching, they saved £1,050 per transaction and avoided settlement fees altogether. Over a year, these savings added up to £3,000+ , simply by improving their FX setup. 3. Strategic FX Guidance and Market Insights Many SMEs navigate the FX market alone, making costly decisions based on guesswork. Having access to a dedicated FX expert can help businesses: ✅ Time their FX trades better with market insights ✅ Set budget rates to protect against unexpected currency movements ✅ Use hedging strategies to reduce FX exposure client Example: Timing a Large USD Purchase A UK business needed to buy £120,000 of USD for upcoming payments. Instead of blindly trading on the day, they worked with their new FX trader to lock in a competitive rate before the market moved against them—potentially saving thousands. 4. Eliminating Foreign Payment Fees Many businesses are unaware that their bank is charging fees on every international transfer. With the right FX provider, these costs can be completely removed . client Example: Spot Trade Savings Our client purchasing USD and CNH from a major bank was consistently overpaying due to inflated margins. A review of their trades showed: £725 saved on a $70,850 trade £44 saved on a CNH 39,500 trade £31 saved on a $4,100 trade Even small differences in the FX margin quickly add up. For businesses making regular FX payments, these hidden costs could amount to tens of thousands of pounds annually . How Much Could Your Business Save? By reviewing their FX strategy, SMEs can often recover thousands of pounds per year . Real-world examples include: EUR purchases: €3.1m per year → Estimated savings: £10,400 per year Deposit savings on forward contracts → £33,000 released back into the business USD purchasing strategy savings → £1,050 per transaction These savings don’t include additional non-financial benefits such as improved planning and risk management . Are You Getting the Best FX Deal? To find out, all we need is three recent FX trade confirmations from your current bank or FX provider . We will: ✅ Analyse your current dealer margin and fees ✅ Show you exactly how much you could save ✅ Offer a simple transition to a better FX solution This review is free and without obligation , but could reveal thousands in hidden savings for your business. Self-Test: Is Your FX Strategy Costing You Money? Do you know the exact dealer margin (spread) you are paying on FX transactions? Are you required to pledge a deposit for forward contracts? Do you pay foreign transaction fees on international payments? Do you have a dedicated FX expert to help guide your strategy? If you’re unsure about any of these, it might be time to review your FX setup. 💡 Contact Branta today to explore how we can help you cut FX costs and gain certainty over your currency transactions.
