M&A Advisory for Small and Micro Businesses

Why Now Is the Time to Act: Small Business M&A in the UK

The UK small business M&A market is gaining real momentum. Following the pandemic and cost-of-living pressures, more owner-managed businesses are coming to market, while buyer activity in the sub-£1.5 million space continues to grow. Most transactions now complete below £1 million — precisely where F9 Consulting specialises.

Deal volumes under £1 million rose by nearly 15% in 2024, driven by retirement, succession planning, and rising compliance costs. Many long-standing owners are now choosing to exit while valuations remain strong, and with changes to Business Asset Disposal Relief (BADR) on the horizon, some are accelerating their sales to secure the current 10% Capital Gains Tax rate before April 2025.

For sellers, this is an ideal moment to plan an exit — strong buyer demand and limited supply are supporting healthy multiples, particularly for stable, well-managed businesses.

For buyers, smaller acquisitions remain the fastest route to growth — offering access to customers, contracts, and skilled staff without the complexity of private equity. Roll-up strategies and bank-funded deals are increasingly common across service-based sectors.

Looking ahead, the outlook for 2025–26 is highly positive. The micro-M&A market continues to expand across the UK, with more sellers coming forward and a growing pool of professional and trade buyers seeking quality targets. In short, small-business M&A is thriving — creating opportunities for sellers to exit on favourable terms and for buyers to acquire at achievable valuations.