If you are a UK business owner who has been considering a sale, the current international dealmaking environment may be the most favourable you will see for some time.
Data from the London Stock Exchange Group shows that overseas bidders agreed $142 billion in takeovers of UK companies over the past year, a 74% increase compared with 2024.
The pace accelerated sharply into the new year: according to data cited in The Telegraph and White & Case, nearly $90 billion of transactions involving UK companies were agreed in just the first two months of 2026, pushing deal values to a 26-year high.
ONS figures separately show that foreign spending on UK companies in Q4 2025 reached £27.4 billion, the strongest quarter for inward M&A activity since Q2 2021.
The primary driver is valuation. UK-listed companies and many private businesses, continue to trade at significant discounts to comparable businesses in the United States and elsewhere.
International buyers, particularly those with US dollar firepower, are finding that UK assets represent exceptional value, especially in sectors such as financial services, healthcare, technology and defence.
The Competition and Markets Authority’s move towards more proportionate and faster merger reviews has also made the UK a more attractive jurisdiction for cross-border transactions, reducing the regulatory uncertainty that had previously deterred some international buyers.
American buyers were involved in just over half of all foreign takeovers of UK companies last year.
European bidders are also active, particularly in mid-cap targets where strategic alignment is a strong driver.
For private business owners, the surge in inbound activity is highly relevant. When listed companies attract international attention at premium prices, it invariably creates a positive halo effect for private business valuations in the same sectors.
International trade buyers are not limiting their interest to listed targets, instead many are actively seeking private acquisitions as part of their UK growth strategies.
If your business operates in a sector attracting foreign interest, now may be an excellent time to assess your options.
A well-run process, one that introduces your business to both domestic and international buyers simultaneously, can create genuine competitive tension and maximise value.
Conversely, business owners who are not looking to sell but whose sector is attracting significant inbound interest should be prepared.
Understanding your business’s value and having your affairs in order means you are in a strong position to respond if an approach arrives unexpectedly.
A surge in overseas investment can create significant opportunity, but only for businesses that are positioned to take advantage of it.
We understand how to run competitive processes that engage both UK and international buyers, helping to drive value while managing risk and complexity throughout the transaction. Get in touch with our experts to explore this further.
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