How UK business owners should prepare for international buyers
The first half of 2025 saw a resurgence in inbound investment after several quieter years for UK M&A since the pandemic. The UK continues to offer strategic market access, established legal protections, and resilient businesses – attracting foreign buyers seeking growth opportunities. For business owners, the current environment presents a real opportunity, provided their company is prepared to engage effectively with international investors.
Understanding the current inbound M&A landscape
Foreign investment in UK businesses is rebounding, but activity remains selective. While some quarters have seen strong inflows, others have moderated, highlighting that the momentum is not uniform. Technology, healthcare, renewables, financial services and specialist manufacturing are the sectors overseas buyers focus on most.
According to LSEG, the UK was the third-most targeted country for global M&A in 2024, with roughly 72% of UK targets acquired by overseas buyers, highlighting why the UK remains attractive to international groups looking at buying a business. For owners, this data underlines the importance of understanding which buyers are active and how to position their business to attract serious international interest.
Why foreign buyers are returning
Several factors explain the renewed overseas appetite. A key driver is valuation: the ONS reports that the value of foreign companies acquiring UK businesses rose to £19.2billion in Q1 2025, up sharply from previous quarters, reflecting renewed confidence in the UK market.
Other drivers include:
• Strategic opportunity: UK companies offer a gateway to European and global markets, supported by robust regulatory frameworks.
• Sector-specific demand: Businesses with scalable operations, proprietary technology, or specialist expertise are particularly attractive.
• Private equity activity: Overseas funds are increasingly allocating capital to high-quality UK mid-market businesses, often using them as platforms for growth.
KBS Corporate’s experience suggests that foreign buyers are both discerning and opportunistic, targeting businesses that can deliver growth, market access, or unique capabilities. For sellers, understanding buyer priorities is critical to achieving a premium valuation.
Preparing your business for international buyers
To capitalise on this opportunity, business owners should ensure their companies are cross-border ready:
• Governance and compliance: Maintain clear financial reporting, up-to-date contracts, and robust operational frameworks.
• International positioning: Emphasise scalability, export potential, intellectual property, and market relevance.
• Due diligence readiness: Foreign buyers typically perform deeper financial, ESG, and operational checks than domestic acquirers.
• Professional support: Engaging advisers with global reach, like KBS Corporate, can ensure the business is presented effectively to the right overseas buyers.
Even modest preparation can significantly increase the number of interested buyers and the potential valuation achieved.
Outlook for 2026
Looking ahead, inbound M&A is expected to remain resilient through 2025 and into 2026, particularly if interest rates ease. The strongest activity is likely to continue in technology, software, packaging, renewables, and healthcare, though opportunities will vary by sector.
Owners should monitor regulatory scrutiny under the National Security and Investment Act and currency fluctuations, both of which can influence deal structures. For businesses that are ready, the next 12 months could provide a strategic window to engage international investors and achieve an optimal exit.
Capitalise with trusted advice
Foreign buyers are returning to the UK, and the market is selective. Business owners who prepare governance, financials, and cross-border positioning – ideally with expert help from firms like KBS Corporate – can take advantage of this trend.
The months ahead present atimely opportunity to connect with international buyers, realise premium valuations, and secure a successful exit. Explore how your business can attract the right overseas investors and maximise its sale potential – contact KBS Corporate today.