22 June 2026
As part of our new Dealmaker’s Perspective series, we’re inviting members of the Translink Corporate Finance UK team to share their insights on the trends shaping the dealmaking landscape and what they mean for businesses today.
In this edition, Partner Will Holmes discusses the growing divide in buyer demand, the qualities that make businesses stand out in a competitive market, and why early preparation remains one of the most important factors in achieving a successful transaction.
What is the most significant trend currently shaping the M&A market, and what impact is it having on business owners, buyers and investors?
The M&A market is currently defined by a clear split in demand, with the strongest businesses attracting significant competition from buyers and investors, while others face more selective interest.
High-quality businesses, particularly those with sticky revenue profiles and scalable growth plans, operating in resilient end-markets are attracting intense competition from both private equity and strategic buyers around the globe. However, businesses with greater exposure to cyclical markets, lower-growth or operational complexity are facing greater scrutiny and, in some cases, extended timelines to transact.
This dynamic is being driven by a combination of factors: higher-for-longer cost of capital, more cautious lending dynamics and ongoing geopolitical shocks creating uncertainty.
For business owners, this means preparation and positioning are more critical than ever.
For buyers and investors, it has reinforced a more disciplined approach but with significant capital still available for the right opportunities – particularly from private equity funds under pressure to deploy.
Overall, while the market remains active, it is more selective, with premium outcomes reserved for businesses that can demonstrate both quality and growth with conviction.
What are the key characteristics that make a business particularly attractive to buyers in today’s market?
Buyers are currently prioritising a combination of predictability, scalability, and defensibility.
Businesses that stand out typically exhibit:
- High-quality revenue profiles (recurring, contracted or highly repeatable revenues) providing visibility over future earnings
- Strong margins and cash conversion with clear levers for further operational improvement
- A clearly differentiated value proposition supported by proprietary capabilities or intellectual property
- Exposure to attractive end-markets such as mission-critical B2B sectors, technology, healthcare and energy/environment
- A compelling growth story with proven momentum and execution
- A diversified and sticky customer base reducing concentration risk and supporting revenue stability
- A high-quality management team with depth, credibility and alignment to deliver the next phase of growth
Increasingly, we are also seeing buyers place significant weight on data quality and availability, not just to validate historical performance, but to drive confidence around the growth plan and the equity story.
In a competitive process, it is often the clarity of the equity story and the quality of preparation that ultimately drive outcomes.
Looking ahead 12 to 18 months, what opportunities and challenges do you expect to define the M&A landscape, and what should business owners be doing now to prepare?
Looking ahead 12-18 months, there are reasons for cautious optimism. We expect to see continued momentum in deal activity, supported by stabilising interest rates and inflation, significant levels of private equity dry powder, and ongoing strategic demand from international buyers seeking growth and diversification.
However, challenges will remain. Macroeconomic and geopolitical shocks are now becoming the norm, meaning business owners are expected to adapt, pivot and thrive in uncertain surroundings. We also expect diligence processes to remain rigorous, with a continued focus on resilience under different trading scenarios.
In addition, the rapid pace of AI adoption is emerging as both an opportunity and a challenge – buyers are increasingly assessing how businesses are leveraging technology and AI to drive efficiency, enhance their value proposition and future-proof operations, while also scrutinising the associated risks and investment requirements.
For business owners considering a sale, the key is to start preparing early – the earlier the better. This includes:
- Robust data packages to support and drive the equity story, ensuring the numbers stand up to detailed scrutiny
- Clearly articulating a compelling growth narrative supported by credible assumptions and evidenced scalability
- Identifying and addressing potential areas of risk before going to market when the business owner is still in control of the narrative and the transaction timing
- Strengthening the management team and governance structures
Ultimately, those who take a proactive approach, often 12–24 months ahead of a deal process commencing, are best positioned to capitalise on a well-run, highly competitive sales process and achieve a premium outcome.
Whether you’re considering a sale, acquisition, investment, or want to understand how current market conditions could impact your strategic options, our team is here to help.
To discuss your business, future plans or potential transaction opportunities in confidence, get in touch with a member of the Translink Corporate Finance UK team.
