Inform Magazine

RECORDS CONTINUE TO FALL “We are hugely optimistic about what FY26 has in store for us.”

PETER KELLY OPERATIONS DIRECTOR

Obviously there remains a degree of uncertainty over what effect the tariffs imposed by the American government will have on the UK M&A market. However, we are confident this will not stop company owners wanting to retire or sell their business, or deter other companies which are on strategic buy-and-build programmes. There has always been some uncertainty about what may or may not happen in the world, and focusing on the operations we can control has always proven to be a successful policy. We are hugely optimistic about what FY26 has in store for us. The high level of activity we saw in FY25 and the record amount of interest from buyers means we start the year with a strong pipeline of deals, while another BADR increase in April 2026 means we are encouraging would-be sellers to consider their options while time remains to take advantage of the current rate. Our growing team contains a huge amount of experience blended with some very talented young people who are bringing new ideas and energy. And as we continue to widen our net in terms of the range of acquirers we deal with, both investment and trade, throughout the UK and EU, one of our next strategic steps is to expand in Ireland and leverage that capability with our knowledge of EU-based buyers. By reading on, you can find out much more about our ability to not only discover the greatest possible scope of potential acquirers, but also why buyers are eager to continue working with us after an initial transaction has been completed. These exciting times also extend to the whole K3 Capital Group to whom we belong, which also continues to make acquisitions of its own, thereby diversifying its service offering to create an even stronger overall client experience. With ongoing success across a very broad range of sectors, and geographically in every corner of the UK, yet another record breaking year looks in prospect.

etting records is not a new experience to us. However, the feeling of pride when new milestones are reached never gets old.

FY25 was another record breaker, in terms of the number of transactions we completed, the total amount of value generated for clients, and the level of interest we saw from buyers, as evidenced by the number of NDAs signed, meetings arranged and offers received. All of those factors have contributed to us retaining LSEG’s No.1 position in the UK corporate mid-market company sales adviser ranking for the eighth consecutive year, and securing the top spot in the European standings too. A slightly unusual 12 months saw two periods of time when there was a major flurry of deal activity, based upon increases in Capital Gains Tax rates. The first of these was in the run up to the Budget at the end of October, when there was some nervousness about the impact that would have on the M&A market. As it transpired, the CGT rate increase was less than some forecasters had predicted, from 20% to 24%. Nevertheless, for our clients who sold their companies at that time, especially the larger deals, it was the right thing to do as that change came in with immediate effect. Then we saw a similar thing again in the run up to the end of the fiscal year on April 5, at which point changes to Business Asset Disposal Relief, which allows qualifying shareholders to reduce their CGT burden on the first £1m of lifetime gains, meant a rise from 10% to 14% paid on gains - and deal activity matched that of the previous autumn. Borrowing costs, meanwhile, are slowly coming down, reducing the cost of any debt a buyer may incur to fund a transaction and potentially having the impact of increasing both valuations and overall deal activity.

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