Age and Lack of Succession Main Reason for Business Sales in the UK

26 February 2026

Age combined with the absence of succession remains the most common reason for selling a business in the United Kingdom & Ireland (UK&I), accounting for 41% of all transactions. At the same time, entrepreneurs are exiting at a younger age: over the past decade, the average age of a selling business owner has declined from 59 to 56.

These are key findings from the latest edition of the Dealsuite UK&I M&A Monitor, based on input from 106 M&A advisory firms active in the UK&I mid-market (companies with revenues between £1 million and £200 million).

Market Uncertainty the New Normal 

After years of volatility, uncertainty has become structural in the UK&I M&A market. Following a stable first half of 2025, activity improved in H2-2025.

In total, 32% of dealmakers reported an increase in the number of transactions compared to H1-2025, while 12% reported a decline and the majority indicated stable activity levels.

Earlier in 2025, the Dealsuite M&A Deal Terms Report already showed that dealmakers are becoming increasingly creative in order to maintain deal flow. The use of deferred payments and other forms of risk-sharing has increased, allowing transactions to proceed despite valuation gaps and economic uncertainty.

Pipeline indicators are also supportive. In H2-2025, 46% of advisors reported an increase in received assignments, suggesting that additional transactions are likely to be closed in the coming months.

Clear Shift Toward Smaller Deals

The composition of transactions shifted significantly toward smaller deals in H2-2025. A significant share of transactions (42%) had a deal size below £2.5 million, compared to 33% in the first half of the year. Meanwhile, the share of transactions above £10 million declined from 25% to 15%.

Average EBITDA Multiple Rises to 5.4

Valuations in the UK&I mid-market strengthened modestly in H2-2025. The average EBITDA multiple increased from 5.3 to 5.4. The average multiple now aligns with those seen in the Nordics and Southern Europe.

A pronounced difference remains between multiples for larger and smaller companies. Businesses with lower EBITDA levels continue to trade at significantly lower multiples. This gap is primarily attributable to the higher likelihood that smaller firms may not achieve their projected cash flows, leading investors to apply a higher risk premium.

Half of Sales Processes Completed Within 6 to 12 Months

Transaction timelines in the UK&I market remain relatively efficient. In H2-2025, half of all sales processes had a duration of six to twelve months. In total, 80% of transactions were completed within one year.

According to Floyd Plettenberg, CEO of Dealsuite: “Even in a market where uncertainty has become structural, well-prepared transactions can still progress efficiently. Buyers are thorough in assessing risks, but when sellers are properly prepared and expectations are aligned, deals can move forward within a reasonable timeframe.”

Business Services and Industrial Sectors Expected to Lead in 2026

Looking ahead, sentiment among dealmakers is clearly positive. 81% of advisors report positive expectations for H1-2026.

Business Services is expected to drive transaction growth in the first half of 2026, followed by Industrial & Manufacturing and Software Development. These sectors continue to benefit from consolidation trends, recurring revenue models and sustained investor interest.

Despite ongoing macroeconomic uncertainty, the UK&I mid-market demonstrates structural resilience. Age-related succession challenges, creative deal structuring and a growing assignment pipeline suggest that M&A activity is expected to remain supported in the period ahead.

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