A Review of the Reported Market Trends affecting M&A Deal Activity.
Introduction
In conjunction with The Corporate Finance Network, this is a review of various research findings and market trends across the world and in the UK, specifically reviewing what impacts these will have for owner-managed businesses.
Nicholsons Chartered Accountants is well placed to advise on specific cases, sectors and likely values, so do speak to us early if you are considering an exit, an acquisition or a fundraise.
The Global & National Picture
Global M&A snapshot
Global M&A in H1 2026 delivered strong deal values through selective, strategy-led transactions, despite fewer deals overall. Technology, energy and healthcare mega-deals drove headlines, whilst mid-market activity remained steady. Capital is available, but disciplined pricing and thorough due diligence remain essential.
UK deal market activity
Experian MarketIQ reports UK volumes down 23.6% year on year to 2,674 transactions, while disclosed value more than doubled to £156.8bn. Mega-deals doubled to 32, accounting for around 74% of total disclosed value. Sub-£10m deals remained the largest category, with 428 transactions, despite a 31.1% fall. The market is polarised: depth remains across the SME and lower mid-market, alongside fewer large strategic and sponsor-led transactions.
MarktoMarket’s H1 2026 indices for All-Cap show activity moderating from the Q4 2025 peak, with median multiples broadly stable and sector mix influencing headlines. Well-prepared, profitable OMBs with strong fundamentals remain best placed to secure interest. Interestingly, provisional data suggests that Nano-Cap (deals < £2.5m) multiples continued to improve slightly in H1 2026, with a median EV/EBITDA of 3.7x, up from 3.6x across the full year 2025.
Message for OMBs: A polarised market concentrates OMB activity in the SME and lower mid-market, where well-positioned businesses transact despite falling volumes. Show resilience and clear value drivers to stand out. Speak to Nicholsons to help your company plan for any transaction early.
More information
Find details of recent deals here.
Start to plan now
Many owners underestimate the time needed to plan a smooth transition. Succession planning should begin well before any formal sale process, ideally 2 – 3 years in advance. A well-structured plan can increase the value of your business, reduce risk for buyers, and make the transition far smoother for staff and clients alike. Ask Glenn Fletcher at Nicholsons for assistance on Exit Planning , so you can start building your roadmap today.
The importance of ESG
Buyers, particularly PE-backed acquirers and larger corporates, are increasingly factoring environmental, social and governance (ESG) considerations into their due diligence. OMB owners who can demonstrate responsible practices, even at a basic level, may find it easier to attract interest and justify premium valuations. This is a relatively new area for many smaller businesses but well worth understanding. Speak to Glenn Fletcher at Nicholsons about how to get started.
What are we seeing?
Fewer, higher-quality deals completing, with buyers paying more for the right businesses. It is increasingly a two-speed market with well-prepared businesses attracting competitive interest, while under-prepared ones sit on the shelf. Engage early with Glenn Fletcher the Corporate Finance and Business Advisory Director at Nicholsons: glenn.fletcher@nicholsonsca.co.uk