5 August 2026
As part of our Dealmakers’ Perspective series, we’re inviting members of the Translink Corporate Finance UK team to share their insights on the trends shaping the M&A market and what they mean for businesses today.
In this edition, Director Aaron Lowery explores the growing influence of AI on dealmaking, the characteristics that make businesses most attractive to buyers and how owners can prepare to maximise value in an increasingly competitive M&A landscape.
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 biggest trend I’ve seen shaping the market this year has been the rapid advancement of AI.
We’re seeing this from two perspectives – firstly, the race to acquire AI technology and capabilities, and secondly, the impact AI is already having on businesses through changing operating models and workforce requirements.
For business owners, AI presents a significant opportunity to enhance value. Companies with proprietary technology, AI-enabled products or valuable data assets are attracting considerable interest. Businesses operating in sectors undergoing digital transformation, or those offering products and services that are resilient to increasing AI adoption, are also well positioned to achieve stronger valuations
For buyers, acquisition has become the fastest route to building AI capability. Developing new AI products internally can be both time-consuming and risky, with technology evolving so quickly that solutions can become outdated before they reach the market. As a result, buyers are increasingly pursuing acquisitions to secure both technology and specialist talent, creating more competitive processes and supporting higher valuations.
Investors are also becoming more selective, focusing on businesses that can demonstrate sustainable, long-term value creation rather than short-term growth alone.
What are the key characteristics that make a business particularly attractive to buyers in today’s market?
While every transaction is unique, there are several qualities that consistently attract buyer interest.
Businesses with resilient operating models, high levels of recurring and predictable revenue, and strong profitability backed by healthy cash generation continue to command premium valuations.
Buyers are also placing significant emphasis on future growth potential, whether that’s through expansion into new markets, product development or exposure to high-growth sectors.
Technology readiness is becoming increasingly important, particularly where businesses have embraced digital transformation or integrated AI into their products, services or operations. Alongside this, an experienced management team and a strong, defensible market position remain fundamental value drivers.
Ultimately, buyers are looking for businesses that can demonstrate both resilience and clear opportunities for growth.
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?
The M&A outlook remains positive, with opportunities for well-prepared businesses, despite ongoing market challenges.
Looking ahead
Market Opportunities
- Strategic acquisitions will continue to drive activity as businesses pursue growth through M&A.
- Private equity remains well funded, creating strong demand for high-quality businesses.
- Companies with strong digital capabilities and AI integration are likely to attract valuation premiums.
Key Challenges
- Buyer scrutiny is increasing, with longer, more detailed due diligence processes.
- Valuation expectations remain a point of negotiation, while economic and geopolitical uncertainty continues to influence the market.
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.
