Where Buyer Demand Is Strongest in the UK Right Now

SME Businesses £1m to £50m Turnover | 2026 Outlook

Why buyer demand matters more than ever in 2026

The start of 2026 is an ideal moment for SME owners contemplating an exit, a partial sale or a partnership with an investor. After two years of macroeconomic uncertainty, mid-market M&A activity in the UK has stabilised and certain sectors are drawing disproportionate buyer attention. This article examines actual trends from 2024 and 2025 and projects where acquisition interest will be greatest in 2026, focusing on the UK SME segment (turnovers between £1m and £50m).

The 2024–2025 SME Sales Landscape

Despite economic headwinds in 2024 (inflation, interest rates), overall M&A activity in the UK proved resilient, with transaction volumes holding up and valuations rising for quality assets. SME valuations strengthened through 2024 as buyers remained willing to pay premia for solid earnings and defensible business models. Median EBITDA multiples in the SME segment improved, indicating sustained investor confidence. Dains

From the second half of 2024 onwards, activity in the SME sale market began to recover. Deal flow improved, and interest from overseas acquirers remained evident, with both trade buyers and investors continuing to pursue UK businesses that demonstrated durability and long-term growth potential.

That resilience continued into 2025: private equity remained well-capitalised and ready to deploy in target sectors that combine growth potential with predictable earnings. bizval Business Valuations

It should also be noted that official statistics show the number of domestic mergers and acquisitions at lower levels than earlier in the decade, but this is largely at the larger corporate end. SME deal activity has shown greater relative stability. Office for National Statistics

Against this backdrop, sector themes emerge where buyer demand has been strongest and where it is likely to accelerate in 2026.

Sectors With Strong Buyer Demand in 2024 and 2025

1. Business Services and Professional Services

Professional services including accountancy, legal, compliance, consulting and outsourced specialist functions were among the most active segments for UK private equity in 2024. Business services accounted for a significant proportion of deals by value and volume as buyers sought recurring revenue and scalable delivery models. KPMG

In 2025, consolidation in accounting, advisory and niche B2B services continued. Notable private equity initiatives to build platform groups in these areas reflect a clear strategic interest that is likely to flow into 2026.

Why it matters for 2026: Low capital intensity, predictable earnings, and platform roll-up economics attract both strategic buyers and financial sponsors. Expect professional services and business services consolidation to remain active.

2. Technology, Software and IT-Enabled Services

Software and technology services have dominated buyer interest through 2024 and 2025, especially where recurring contracts, scalable technology and defensible margins exist. This is consistent with a longer-term structural preference among acquirers for SaaS, managed services and software + services models. bizval Business Valuations

Tech integration, digital transformation and analytics remain priorities for buyers seeking to accelerate capabilities.

Why it matters for 2026: As digital adoption deepens and AI-driven solutions proliferate, technology and technology-enabled SMEs with sticky revenue will be high on buyer screens.

3. Healthcare and Care-Related Services

Demographic pressures and fragmented markets have made healthcare and care services attractive to both corporate and private equity buyers. From specialist clinics to domiciliary care and ancillary services, this subsector has shown resilience and growth that buyers value. bizval Business Valuations

Why it matters for 2026: Buyers will continue to favour businesses with regulatory quality, stable staffing and strong local reputations, particularly where consolidation logic is clear.

4. Industrials, Engineering and Infrastructure-Linked Services

While “traditional” infrastructure assets can be cyclical, buyers in 2024–2025 showed strong interest in service providers supporting energy, utilities and industrial maintenance. Deal values in industrials and services grew sharply year-on-year, reflecting strategic buyer appetite for assets enabling long-term contracts. PwC

Why it matters for 2026: The energy transition and maintenance of critical infrastructure will sustain demand for niche engineering, compliance services and long-duration service contracts.

5. Niche Manufacturing and Supply Chain Specialists

Manufacturing remains important in SME acquisitions where products are differentiated and relationships deep. Acquirers tend to prioritise manufacturing businesses that occupy defensible niches, particularly where production know-how is difficult to replicate and customer relationships are sticky. Activity levels in industrial and manufacturing transactions increased during the second half of 2024, reflecting renewed buyer engagement.

Why it matters for 2026: Strategic buyers looking to secure supply chains and integrate capabilities will target niche and high-quality manufacturers.

6. Consumer-Facing and Leisure (Selective Opportunity)

Certain consumer sectors, particularly where brands have strong customer loyalty, disciplined economics and digital channels, showed renewed activity in 2025. However, this interest is selective and performance-driven.

Why it matters for 2026: Buyer demand exists, but only for consumer businesses with scale, differentiation and solid profit margins.

Where Demand Will Be Strongest in 2026

Based on observable patterns and capital availability entering 2026, sectors poised for the strongest acquisition interest include:

Professional and Business Services:

Continuing consolidation and platform strategies.

Technology and Software:

Recurring revenue and scalable digital models.

Healthcare and Care Services:

Demographic and regulatory driven growth.

Industrial and Energy Transition Supply Chains:

Linked to net zero and infrastructure needs.

Specialist Manufacturing:

Differentiated products with export or IP value.

Less robust demand is expected in highly cyclical, low-margin consumer sectors where performance remains inconsistent, and in owner-dependent service businesses that have not built systemic value.

What This Means for SME Sellers

• Preparation Matters

Buyers in 2026 will pay premium multiples where recurring revenue, clean financials and management independence are evident.

• Sector Positioning is Critical

Listing your business where buyer demand is demonstrable not hopeful will materially impact valuation outcomes.

• Competitive Tension Maximises Value

Creating a controlled process that invites multiple qualified buyers remains the most effective way to optimise price.

Conclusion

Buyer demand for SME businesses in the UK retains clear sector patterns. In 2026, demand will be concentrated where growth drivers and structural economics align with buyer strategy notably in business services, technology, healthcare, select industrials, and specialist manufacturing. Understanding these dynamics is essential for owners preparing for a sale or investment round.

If you are considering selling or seeking to understand where your business sits in the current acquisition landscape, BusinessWanted.com provides market-level insight, verified buyer intent and strategic access to qualified acquirers.

If you are looking to acquire a business or considering the sale of your own, now is the time to act with clarity rather than assumption. BusinessWanted.com connects serious buyers and sellers through verified buyer intent and live market demand. Contact us today to discuss your acquisition or exit plans in confidence.

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