Deals market in London could open up in 2026 – but preparation is key

The pace that things can move at has picked up in the last few years, so you need to be ready to move quickly. At the same time though, risk sensitivity has increased – buyers want to make absolutely sure of what they’re purchasing, meaning that due diligence has become even more thorough. Parties in a deal want to run faster while going deeper, which can be challenging for some sellers – preparation is key.

Technology is often a focus for buyers/investors as operating models become more digital and especially with the advent of AI. We see this in our KPE Barometer where the number one reason for considering an acquisition is gaining access to technology (or talent), ahead of simply expanding market share. Be very aware that third party buyers and private equity investors will look closely at the technology footprint of your business and the degree to which it is digitised and future fit. Cybersecurity is also top of mind. Even if you are not at the cutting edge, being able to show that there is a technology plan and roadmap for the future, including potentially AI, is an important area to cover. This is in fact another aspect where London and South East private enterprises appear relatively strong, with the highest prioritisation of investment in technology and AI of any region in the country.

This brings me to my next point which is that anticipating what buyers will want to see and preparing accordingly is fundamentally important. It’s a bit like selling a house – it can be the prompt to fix that dripping pipe or repaint that tired spare bedroom. In the same way, put in the work across key areas of your business ahead of a process. Is your financial MI up to scratch? Are your tax affairs up to date? Are you compliant with key rules and regulations for your sector? Are key customer contracts signed and locked in?

All our experience in supporting private enterprises through a deals process shows that better prepared businesses typically attract better buyers at better prices. Our deal readiness offering can help you assess where you stand and identify areas to fix ahead of commencing a process – leading to a smoother process with fewer knock-backs and stress-inducing due diligence queries.

Doing the preparation may also help you with my final point which is to be clear about what your desired outcomes are. What position do you want to be in post-deal? Do you want to retain day to day involvement with the business or step away completely? What financial stake (if any) do you want to retain? You don’t have to be absolutely decided about these things – you can go into a process keeping your options open – but it certainly helps to know any red lines for what you’re aiming at.