UK business sales outpace overseas acquisitions as owners prioritise exits

UK business owners are increasingly opting to sell domestically rather than pursue international acquisitions, reflecting both market caution and lingering post-pandemic uncertainty.

Analysis of 10 years of Office for National Statistics data by BusinessesForSale.com, a global marketplace for buyers and sellers, shows UK M&A activity in 2024 reached 1,798 deals, up 4.3% from 1,720 in 2023. The increase suggests a modest recovery, but volumes remain below the 2021 peak of 2,396 deals, when low borrowing costs and pent-up demand drove a surge.

The decade has been volatile. Activity more than tripled from 490 deals in 2015 to 1,920 in 2018, before Brexit and pandemic uncertainty caused fluctuations in 2019–2020. The latest data shows 899 acquisitions of existing businesses, 619 independent company sales, and 280 subsidiary transfers, with the rise in independent acquisitions suggesting smaller businesses are once again finding buyers.

“The M&A market is at an inflection point,” said Andrew Markou, Co-owner & CEO at BusinessesForSale.com. “Owners are testing the waters, not diving in. Buyers have capital but remain selective. Sellers want fair valuations but won’t wait indefinitely if market conditions deteriorate further.”

UK firms continue to favour domestic deals over overseas expansion. In 2024, the domestic-to-overseas acquisition ratio was 5.3:1, narrowing slightly from 6.9:1 in 2021, as international deals grew 7% compared to domestic growth of 4.3%. Independent overseas acquisitions remain low, with only 39 acquired in 2024.

Markou notes that in periods of high confidence, domestic and overseas acquisitions tend to rise in tandem. Conversely, during downturns, cross-border activity declines more sharply than domestic deals. “In volatile markets, selling a UK business feels safer than buying abroad,” he said. “Currency risk, regulatory complexity, and economic uncertainty make international acquisitions harder to justify.”

Looking ahead, market recovery is expected to be gradual. Owners with strong financials, clear growth strategies, and realistic valuations will be best positioned, while less-prepared firms may struggle to attract buyers at premium prices.

“Ultimately, M&A reflects confidence,” Markou concluded. “As the economy stabilises, deal activity should follow, but don’t expect a return to 2021 levels anytime soon.”

Credit: BusinessesForSale.com (https://uk.businessesforsale.com/)