My HGH
My HGH
For many owner-managed businesses, private equity has traditionally felt out of reach as an investor or a potential acquirer. Unless your company was large enough, growing fast enough, or had a well-established management team in place, PE buyers simply were not interested. That landscape has changed dramatically and understanding why could transform your exit options.
The UK Merges and Acquisitions (M&A) market remains active, with MarktoMarket’s 2025 UK M&A Valuation Indices showing that the Industrials & Business Support Services sector continues to dominate transaction activity, “accounting for approximately half of all transactions” in their analysis. Significantly, micro-cap deals (those valued between £2.5 million and £10 million) now represent 41% of all transactions, up from 33% in 2024, demonstrating that smaller deals are increasingly popular.
This is partly due to the demographic of the UK business owners population but is also because there are now more potential acquirers of smaller businesses than ever before.
The Rise of the Roll-Up
Private equity firms have increasingly turned to platform and roll-up strategies to deploy capital in smaller deals. Rather than acquiring one large business outright, PE houses now buy a “platform” company and then bolt on smaller acquisitions to build scale, consolidate market share, and drive efficiencies. This approach has opened the door to thousands of businesses that would previously have been overlooked.
According to MarktoMarket, sectors such as logistics, professional services, construction and business support services are seeing particular consolidation activity, with valuations in the Industrials & Business Support Services sector improving to a median EV/EBITDA multiple of 5.8x in 2025.
For owner-managers, this is significant. Your business no longer needs to tick every box on its own. If you operate in a fragmented sector with consolidation potential, PE-backed platforms may well be actively seeking businesses like yours. Even if you lack the size or management depth to attract stand-alone investment.
What Are They Looking For?
Platform acquirers typically seek businesses with stable, recurring revenues, a loyal customer base, and operational processes that can integrate smoothly into a larger group. They value owners who have documented their systems and can demonstrate consistent financial performance, even if growth has been modest. Cultural fit and a willingness to support a transitional handover period are also important considerations.
Crucially, timing matters. Roll-up strategies do not last forever. Once a platform reaches a certain scale or begins to face integration challenges, the buying window closes. If you wait too long, the opportunity may pass you by entirely.
The current market environment underscores this point. MarktoMarket reports that “geopolitical uncertainty, tariff tensions, and AI-related workforce changes have contributed to buyer nervousness, which has fed through to valuations.” Overall M&A multiples have declined from 6.5x in 2024 to 6.1x in 2025. Windows of opportunity can close quickly, and those who hesitate risk missing the optimal moment.
How our Corporate Finance Team Can Help
Identifying which PE roll-ups are active in your sector is not straightforward. However, our corporate finance team have access to market-leading research resources and databases which can map the landscape, pinpoint relevant buyers, and help you understand what makes your business attractive to them. More importantly, they can guide your exit planning – ensuring your financials, operations, and management structure are positioned to meet buyer expectations well before you go to market.
Private equity is no longer reserved for the largest or fastest-growing companies. With the right preparation and advice, smaller businesses now have genuine opportunities to access this buyer pool. The key is acting before the market moves on.
Need Help? Get In Touch!
If you would like to discuss how we can assist you in identifying exit strategy, please call us on 01904655202 or speak to your usual contact at our office.
