When you think of dealmakers in Yorkshire, Richard Goldsack is always one of the first names that comes to mind.  Recently crowned Yorkshire Insider Dealmaker of the Year for the second time, he has more than 25 years of experience in corporate finance, spanning Yorkshire and Australia. Few people have seen as many cycles, deals and leadership teams at close quarters, and fewer still combine that depth of experience with such clarity of thought and generosity of perspective.

From our point of view, Richard has been an invaluable sounding board as our business has grown. We place real value on his judgement and his ability to step back and offer a considered view on the wider market, not just the transaction in front of him.

When we want an honest, well-informed view of the dealmaking landscape and the prospects for SMEs across Yorkshire, there are very few people we would look to before Richard.

How would you describe the true state of dealmaking in the North right now, once you strip away the noise and headlines?

I think the first thing everyone needs to do is create the right context. Too many people are still looking back to the post-COVID boom of ‘21/’22 as their reference point. Those years were exceptionally buoyant and not a fair benchmark for what normal dealmaking looks like.  2025 was not as strong, but it feels much more like a typical year and it has been pretty good.

Deals are taking longer and are generally more complicated to complete. Many businesses are trading more tightly than before, which has led to increasing polarisation in the market - on one side, some genuinely outstanding businesses will attract strong interest if they came to market. On the other hand, plenty are operating in tougher, slower sectors where momentum is harder to generate.

Overall, I would describe the market as fairly strong and certainly stronger than many people imagine. One of the biggest challenges at the moment is that private equity sell-side activity remains in a hiatus. Assets are being held for longer, either to improve performance or to wait for market conditions to improve. Everyone talks about the amount of private equity capital available to invest, but that needs to be balanced against the real challenges around exits. Continuation vehicles have become an increasingly common way for private equity investors to effectively sell to themselves and realise some value, but that does not generate a large volume of work for dealmakers. The old assumption that private equity held assets for around three years no longer holds true; in my view, the reality is closer to five or six years now.

As private equity volumes have stalled, we are seeing more activity from private vendors. More owner-managed shareholders are deciding that they want to sell, often because they have had enough, are thinking about emigration, or are planning ahead for potential inheritance tax changes. That shift has helped sustain deal flow and has improved overall appetite to transact.

In summary, I feel positive looking ahead to 2026. There are deals to be done, pipelines are busy and while the market is more considered than in previous peaks, it remains active and in better shape than sentiment alone would suggest.

Looking at the founders and shareholders who have successfully realised value over the past year, what lessons stand out most to you?

The most obvious lesson is the value of appointing advisors early. Doing so creates time to prepare properly and significantly improves outcomes. We have seen the typical preparation period move from around three months to six months, and in some cases as long as two years ahead of an exit. The idea of being truly deal-ready, able to complete from the very first meeting with a buyer, is aspirational and relatively rare, but it illustrates the point. The earlier you start, the more control you retain over the process and the result.

Another clear lesson is the importance of making strategic decisions before entering a sale process. Choices around new products, market segments and customer concentration all have a direct impact on both the quality of earnings and the multiple. Once a transaction is underway, it is often too late to address these issues properly, so the strongest outcomes tend to come from those who tackle them well in advance.

I also see a very clear pattern when it comes to leadership. The businesses that execute most effectively almost always have two critical roles firmly in place on the leadership team:

• Chair or non-executive director, who brings perspective, challenge and an external lens at key moments of decision making.
• A deal-literate, value creation-focused CFO, who understands how buyers think, how value is assessed and how to position the business throughout the process.

When those two roles are occupied and working well together, it materially improves both the quality of preparation and the likelihood of achieving a strong outcome.

Education is another important factor. The most successful shareholders invest time in understanding the different types of deals available to them and what might suit their personal and commercial objectives. Whether that is private equity, trade, debt funds or an employee ownership trust, there are many routes to consider. There are plenty of ways to start building that understanding, but in my experience, the most effective approach is always to talk directly to advisors rather than relying solely on desk research. In reality, most exit routes are usually possible, except for an IPO in many cases.

Finally, the most prepared founders start by asking themselves a simple but often overlooked question: “What is my number?” We can calculate what a business might be worth, but we cannot determine what each shareholder needs to support their lifestyle or future plans. That is why we involve independent financial advisers and wealth managers in so many of our transactions. Understanding personal objectives early on is critical to shaping the right deal.

Corporate Finance has become much more than simply marketing a business and finding a buyer. The most successful outcomes are driven by preparation, education and alignment, long before a deal formally begins.

When shareholders look at the economic headlines and political noise, what actually matters when shaping exit plans?

The obvious starting point for most people is Capital Gains Tax. It currently stands at 24%, having increased from 20% in 2024, and in my view it is likely to remain here. It is an easy headline to focus on, but it should be seen as part of the landscape rather than a trigger for rushed decisions.

Inheritance Tax has generated plenty of discussion, but it has created little direct impact on deal activity. It has certainly kept tax advisors busy, but succession planning remains a much more consistent driver of decisions. The key question is often whether the next generation actually wants to take on the business or is ready to do so. In most cases, IHT liabilities can be funded or managed, so they tend to be less decisive than the human realities of ownership transition.

Emigration is also a genuine factor. We do see shareholders considering or planning moves overseas, but it is not without complications. Founders who have already relocated are often less attractive sellers to private equity, which can narrow their options. That nuance is not always appreciated when emigration is discussed purely as a tax-driven decision.

I think CGT changes are often overplayed in the media. For most founders, tax efficiency is rarely the primary driver of an exit. Uprooting a family and moving abroad is a drastic step, and it is unlikely to be motivated by saving a few percentage points of tax alone.

Donald Trump inevitably dominated headlines, particularly around his tariff plan and Independence Day last year. From what I have seen, the impact of those policies has been manageable for businesses in our region. A bigger concern for me is the potential for disruption in the US tech sector. The fact that just three companies, Apple, Microsoft and NVIDIA, have a combined valuation greater than the entire UK stock market is remarkable and naturally raises questions about concentration risk. We can only hope those valuations are justified.

Closer to home, whatever your view on UK politics, we have benefited from around 18 months of relative stability in economic strategy. That consistency has helped confidence and planning, and if it continues for the next couple of years, it should remain supportive for dealmaking and decision-making alike.

In today’s market, where do SMEs create the most meaningful and transferable value in the eyes of buyers?

The first and most powerful driver of value is the stability of income – it has become even more so in unstable times. In current corporate finance language, that really means recurring revenue. This is why the SaaS sector continues to be a very attractive deal market and why so many other sectors are trying to adopt the same logic . Businesses with genuinely recurring revenues can be sold for high multiples and there are no shortages of buyers or investors for these businesses. Similar dynamics exist in sectors such as accountancy firms, wealth managers, insurers and in compliance-driven industries, where predictable income streams support very strong multiples.

Buy-and-build strategies have also become a major theme in these fragmented markets. The dental and veterinary sectors are examples of which have been heavily consolidated by private equity. There is still a long way to go in many other industries. Accountancy is a good example, where there are still around 20,000 firms across the UK, highlighting just how much consolidation potential remains.

Another interesting trend is the changing profile and mindset of vendor shareholders. The average age of sellers has come down, and motivations have shifted. Historically, many founders were driven by the question of how much value they could extract and then go again. Increasingly, the focus is on something much simpler and more personal: at what point can I retire? That links directly back to the importance of starting with the question, “what is my number?” There is only so much value you can build and only so much you can spend. It is entirely understandable that successful founders choose to step back, spend time with family or travel, rather than continue indefinitely. It sometimes feels as though Generation X may be the last cohort that is entirely obsessed with work and struggles to see life beyond it.

If founders and boards want to strengthen value now rather than wait for the market to change, what practical steps should they be taking?

The most immediate and practical step is to get the right management in place and in particular in the key role of either a managing director or a chief executive. Private equity investors are backing businesses they believe can double in value, and in the current market that is difficult to achieve without proven leadership in place. That is why having the right individual running the business is so important in their investment decision-making.

One clear trend is founders appointing an MD ahead of a transaction. That shift resonates strongly with private equity, not simply because it fits their blueprint, but because it is genuinely the right thing to do to drive value. Private equity accounts for around half of all acquisitions in the market, so the way they think about leadership and structure is a sensible reference point for any founder planning an exit. That said, I recognise how challenging this can be. Handing over the reins to a CEO who has not been on the journey from day one is a significant emotional and practical step for many founders.

Ultimately, the strongest valuations tend to be achieved by businesses led by great founders who have consciously surrounded themselves with great people. That includes experienced advisors, a deal-literate CFO, a strong Chair and the right CEO or managing director. When that leadership ecosystem is in place, it sends a powerful signal to buyers about both the quality of the business and its potential to grow beyond its founder.

Looking ahead, what makes you genuinely optimistic about 2026?

I feel positive about 2026. Compared to the past three years, the market should be easier to operate in. There is more stability, more capital available and a greater number of businesses performing well, which creates a much healthier backdrop for dealmaking.

Of course, we all hope there are no further seismic shocks, but it is also important to keep our frame of reference realistic. I am not expecting a return to the halcyon years of 2021 and 2022. In my 25 years in this industry, I have only seen periods like that a couple of times before. That does not mean the outlook is weak, it simply means it is more sustainable and grounded.

There are also some very encouraging structural signals. Private equity will return to the sell side, stock markets are more open and that is creating renewed opportunities across the FTSE and the London Stock Exchange. Those routes matter, not just in their own right, but because they improve confidence and liquidity across the wider market.

The UK remains an attractive destination for international capital. Relative to many overseas markets, we are still good value. There is a clear valuation gap when you compare the UK with the US, and we also expect interest to return from the likes of Chinese and Japanese buyers, who have been subdued for several years now.

When you put all of that together, there are genuinely many reasons to be positive about 2026. It may not be a repeat of recent peaks, but it has all the ingredients of a healthy, active and opportunity rich market.

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Nik Pratap - Managing Partner

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