Moore Kingston Smith’s transaction services update – H2 2025

Positive macro trends driving H2 M&A momentum

The transaction services team at Moore Kingston Smith continues to act as a trusted adviser for strategic acquirers in our core sectors. In the second half of 2025, the team advised on over 20 completed deals and continue to work on several undisclosed live deals.

Lower mid-market investors remain cautious, looking to robust and resilient business models. Opportunities still need to be insulated from macro headwinds, operationally robust and show growth opportunities. While it could be argued that this has always been the case, the appetite for risk in any of these areas remains low.

Despite the caution, we saw positive momentum in Q4 M&A activity following subdued activity in Q2 and Q3. How much of this swing was pent-up demand remains to be seen. However, we do expect this momentum to carry into 2026 as the lower mid-market continues to mature. Trade and private equity, continue to look for value through bolt-on acquisitions to existing platforms. Assets with specific, defensible, and complementary capabilities remain in high demand.

The UK macro-economic backdrop was positive, with prices stabilising and interest rates reaching a three-year low of 3.75% in December 2025. If this trend continues as expected, and cost of debt continues to fall, it will only serve to maintain the M&A momentum of Q4.

The FTSE closed 2025 at record highs and was resilient to the broader political and macro-economic landscape throughout H2 driven by improvements in underlying asset performance. The improved performance is mirrored in specific verticals of our core sector coverage: media and marketing services, and business services.

Moore Kingston Smith’s transaction services highlights

PE and PE-backed

Trade