Moore Kingston Smith’s transaction services update – H1 2026
Selective momentum returns to the lower mid-market with quality, confidence and cross-border capital defining 2026
The transaction services team at Moore Kingston Smith continues to act as a trusted adviser for strategic acquirers, private equity investors and management teams across a broad range of acquisitions in our core sectors. Following a flurry of activity towards the end of 2025, the start of 2026 is presenting a mixed picture for the M&A market. While global M&A values have increased, overall M&A volumes have declined. This K-shaped recovery impacts the mid- and lower-mid markets disproportionally and transaction activity remains selective, premium “must-own” assets commanding higher valuations while non-core assets remain in slower processes.
Large corporates continue to streamline operations around their core offering, creating opportunities for carve-outs. Moore Kingston Smith has advised on several notable transactions, including Wonderhood’s acquisition of Elvis Communications from Next 15 Group Plc, 2i’s acquisition of Planit UK and Haygarth Group’s MBO from Omnicom.
The market is not without challenges. While inflation and interest rate expectations had begun to stabilise, H1 2026 was marked by mixed economic conditions, fragile business confidence and renewed geopolitical uncertainty, particularly in relation to the events in the Middle East, which raised concerns over energy prices, short-term inflation and the pace of further interest rate cuts.
As a result, both trade buyers and private equity investors remain disciplined on how they approach acquisitions with valuation gaps narrowing in certain sectors. For private equity, bolt-on acquisitions continue to be an important route to value creation, particularly where platforms can add specialist capability, broaden geographic reach or accelerate digital transformation.
Globally the UK remains attractive, particularly to US investors. The bullish markets in the US and structural valuations gaps between the two economies are leading to increased capital seeking assets and capabilities in the UK.
Looking ahead, we expect the rest of 2026 to be defined by a continued flight to quality and inbound cross-border activity. Businesses that can evidence robust underlying trading, reliable cash generation and strong management information are likely to attract the greatest buyer interest. Conversely, assets with volatile revenue, weak visibility or unresolved operational issues may continue to experience longer diligence processes and more challenging negotiations.
Technology, media and marketing services, business services, renewable energy and specialist industrials remain areas of active buyer interest. Artificial intelligence, automation and data-led service delivery are increasingly central to acquisition strategy, not just within technology businesses but across service-led sectors where buyers are seeking productivity gains, enhanced customer insight and scalable operating models.
Moore Kingston Smith’s transaction services highlights
During H1 2026, the Moore Kingston Smith transaction services team has continued to support trade buyers, private equity investors and private equity-backed platforms across a wide range of transactions.
Recent activity has been concentrated in sectors where Moore Kingston Smith has deep industry expertise, including media and marketing services, technology and IT services, renewable energy, business services and specialist manufacturing. These sectors continue to benefit from strong strategic rationale, active consolidation themes and demand for differentiated capabilities
PE and PE-backed
Trade
