2025 was a year of change for businesses across all sectors.
While economic headwinds and the Autumn Budget presented challenges for consumer spending and business margins, the fundamental strength of certain sectors has shone through.
In particular, businesses in technology and professional services continued to attract significant investment to support growth strategies ranging from buy-and-build and international expansion to investment in product development.
Over the past 12 months, we’ve advised on a number of transactions across the North West that offer insight into what’s driving this activity – and what businesses and investors should be watching as we enter 2026.
Quality over quantity
Activity in 2025 was characterised by selective dealmaking.
Overall transaction volumes remained measured, with economic conditions causing investors and acquirers to take a more thoughtful approach.
The businesses that attracted interest were the ones that meet increasingly refined buyer criteria – namely businesses that have brand equity, a niche service and a defensible market position.
Also, companies with recurring revenues and digital maturity alongside operational resilience.
These were demonstrated by specialist law firm, Hawkswell Kilvington, which we advised on its sale to Beyond Law Group in October.
Trade sales remain highly popular within the legal sector due to its fragmented nature and strong profitability – creating substantial consolidation potential that is driving activity across the UK.
Similarly, the management buyout of Whitefield-based digital postage specialist, Unifiedpost UK, in August demonstrated another key trend: management teams stepping up to take control of their business’ futures.
In an environment where corporates are reassessing their portfolios and carving out non-core assets, well-prepared management teams with strong operational track records are finding the market receptive to management buyout (MBO) opportunities.
Pressure to deploy
Yet in the wake of this period of targeted dealmaking, conversations with our private equity network reveal a consistent theme that will be welcome news for ambitious businesses: firms are flush with capital to deploy.
With funds raised and exit timelines approaching, investors are actively searching for high-quality assets – and in some cases, they’re willing to bridge valuation gaps that might previously have stalled deals.
What’s particularly notable is how investment criteria have shifted. Many investors are moving away from purely growth-oriented strategies towards operational value creation.
This involves focussing on businesses which drive tangible improvements – be it through supply chain optimisation or integrating complementary capabilities across portfolio companies.
As such, we expect this to drive an increased focus on buy-and-build strategies, particularly in the healthcare, life sciences, renewables, technology and professional services sectors.
We saw this first-hand when advising Bury-based, Nobel Fire Systems, in securing investment from Swedish private equity firm, Systematic Growth, in August.
This transaction marked a strategic step in Systematic Growth’s buy-and- build approach within the safety sector, with Nobel forming part of its newly established group, Safecto.
Entering the new year
As we start the new year, there are strong reasons for optimism. With interest rates stabilising and clarity emerging around fiscal policy, deal activity is expected to strengthen. Private equity firms are increasingly looking to deploy capital and this should drive strategic acquisitions in resilient sectors.
For businesses considering their growth options, the message is clear: the market is open, and well-positioned firms with strong fundamentals will appeal to engaged buyers.
However, thorough preparation remains essential, as does the ability to present robust performance metrics within a clear growth narrative.
Recent deal activity in the Manchester region reflects broader market dynamics that will continue to shape 2026 – with selective but active buyers applying quality-focused investment criteria, creating real opportunity for businesses that can demonstrate operational excellence.