The deals market is an important indicator for us. It influences the demand for new leaders both before and after transactions complete and gives us a clear sense of business confidence across the region.

We are often asked by CFOs and Finance Directors for an overview of what is really happening - not just in terms of appointments, but in overall deal activity. That is why we stay close to the dealmakers and experts who shape the market in Yorkshire.

With a stuttering economy, a new Budget only weeks away that is likely to bring changes to tax, and a wave of positive PR as we build up to the Yorkshire Dealmakers Awards on 20 November, the question comes up more than ever. Rather than add more noise, we have asked a small group of trusted experts to share their views of what is truly happening in the regional M&A market right now.

To give an honest and insightful view, we spoke with three people who are right at the centre of deal activity in Yorkshire:

• ‍‍Dan Renton, Partner at Park Place Corporate Finance – one of the region’s most active independent corporate finance advisors.

• ‍‍Dahren Naidoo, Partner at Freeths – a leading corporate lawyer with extensive experience advising on complex transactions across Yorkshire and beyond.

• ‍‍Matt Tice, Partner at Key Capital Partners – a growth-focused private equity investor backing ambitious management teams across the UK.

How do current M&A activity levels in Yorkshire compare to the recent past?

Are you seeing deals getting done, or is there more hesitation?

‍Dan Renton

Year-end statistics will likely show that deal volumes have slowed but will also highlight where great businesses have continued to make hay with smart M&A. The underlying drivers impacting activity:

• Higher interest rates are keeping debt costs elevated.
• Private equity is keen to deploy. Strong investment cases are still attracting interest.
• Trade acquirers are also active, often turning to selective M&A to deliver growth that organic expansion alone cannot achieve.

Inconsistent trading patterns are impacting deal completions. Many companies are experiencing periods of strong growth, only to find the following periods somewhat flatter or challenged by a right-shifting of new opportunities as customers display caution. That ‘inconsistency’ and lack of an easy trend line present challenges for funders and buyers, but also opportunities for those taking a longer-term or more considered view.

Dahren Naidoo

It has undoubtedly been a more challenging market, particularly in the mid-market private equity space, where transaction volumes are down year-on-year.

That said, the region has still seen some standout deals — including Mobeus’ exit of The Pink Stuff business to RPM International, and Macquarie Capital’s investment in UniHomes.

The hesitation we are seeing is less about appetite and more about uncertainty. Valuation gaps have widened, and deals are taking longer to close. As a result, structures such as earn-outs and vendor financing are increasingly common to bridge those gaps.

Matt Tice

This year has felt like one of two halves — a slower start followed by a stronger finish, with noticeably better-quality deal flow in recent months. That is encouraging.

Deals are still taking longer to complete, and that is unlikely to change. The lessons of recent years have made investors more cautious and more forensic in their due diligence. At KCP, we are prepared for that and continue to move forward on the higher-quality opportunities that meet our criteria.

What is going on behind the doors of the PE houses? Are they still deploying capital and how has access to funding changed?

Dan Renton

Private equity remains a cornerstone of the longer-term capital available to private businesses. We are fortunate here in Yorkshire to have some thoughtful and established PE houses that recognise the importance of deploying capital through all parts of the economic cycle. That said,  there have been fewer completed PE transactions. This is driven largely by a lack of demand rather than a lack of supply.

Dahren Naidoo

The challenge seems to be around finding the right business to deploy primary capital, but we are seeing an increase in platform deals and consequent bolt-on activity.  

Growth and venture capital investors are also becoming more assertive — Northern Gritstone is a great example of a fund actively deploying capital into quality opportunities. The capital is there; it is alignment and timing that matter most.

Matt Tice

Absolutely, we are. We have significant capital to deploy and are actively seeking new investment opportunities.

The marketplace remains competitive, so we are investing in our team to originate and execute deals across the country. The most recent example of this is the recruitment of Ben Jones, a director in our team focused solely on origination. An appointment that makes a statement of our confidence and intent.

What is the current balance of transactions across trade sales, MBOs, PE backed buy-and-builds, bolt-ons or something else?

Dan Renton

We see continued activity across all areas of M&A, albeit at more modest levels compared to the boom period post-COVID. One very notable trend is the level of bolt-on activity for PE-backed or general trade acquirers. Bolt-ons are generally considered a lower risk strategy than large platform deals, so it should be of no surprise that M&A activity has tilted in this direction. It will be important to observe over the longer term if acquirers commit to the hard yards to fully integrate and drive commercial synergy across their expanded groups. The appetite of the ‘next’ buyer (or exit) is often the best measure of success - we note a more focused valuation lens on ‘quality of earnings’ rather than just ‘quantity of earnings’ so successful integration will be key to value accretion in our opinion.

Dahren Naidoo

In the middle of this year, we saw a noticeable rise in trade sales — particularly involving international buyers. That confidence from overseas investors shows that the UK remains an attractive place to do business.

These strategic buyers are often better positioned to bridge valuation gaps, especially when a deal fills a specific gap in their portfolio or market coverage.

What is the outlook for 2026 and beyond?

Dan Renton

The current mix of high inflation, elevated interest rates and global uncertainty will continue to shape confidence into 2026.

M&A is far from stalled. We expect activity to hold steady through 2025 and to strengthen as confidence rebuilds in 2026. Our Yorkshire business community has shown itself to be very well prepared for change and fresh challenges when measured across the medium and longer term. There is predictably a lag between notable economic events and businesses recalibrating their models accordingly. Policy changes will continue to test business resilience, but Yorkshire companies have shown again and again that they adapt quickly and look for opportunity in uncertainty.

Dahren Naidoo

The Yorkshire market is a resilient one, and if we get stability around inflation and interest rates, we see no reason not to expect an increase in deal flow in 2026.

Matt Tice

I expect more of the same from the second half of 2025. There remain good quality businesses out there and we are excited going into 2026 to continue to invest and back strong management teams both in the region and nationally.

The leadership angle

We see the impact of the deals market most clearly through the appointments we make. Across Yorkshire, we are working with some outstanding businesses throughout 2025 — companies with ambition, purpose and confidence in their future. Many have used M&A as a catalyst to grow stronger, while others are building the leadership capacity that will underpin successful exits in 2026 and beyond.

Our last quarterly update on  CFO appointments across the region (click here) noted that there is real movement at board level, driven by transformation, growth and succession planning.

The connection between leadership and deal activity has never been stronger.

For us, the message from this discussion is clear — Yorkshire’s M&A market is steady, pragmatic and full of opportunity for ambitious, well-led businesses that are ready to take the next step.

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Nik Pratap- Managing Partner

Click here to access our 2025/26 CFO Network Annual Report

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