Maximising Valuation: Why now matters

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Introduction

Mergers and acquisitions (M&A) activity in the UK remains strong, with technology and finance leading the way. According to the latest BDO Private Company Price Index, average SME multiples rose to 7.2x EBITDA in Q2 2025 - an encouraging sign of investor confidence as the economy stabilises.

Private equity liquidity, favourable policy, and rapid digital adoption are fuelling demand. For SMEs with revenues in the £1m - £40m range, particularly those embracing tech‑driven models, the opportunity to command premium valuations is clear.

This article sets out how owner‑managers can position for maximum value by focusing on readiness, sustainable growth, and buyer fit.

Market landscape: valuation gaps by sector

Investors are rewarding digital resilience. While more traditional sectors such as retail and manufacturing average 5.5 - 6.0x EBITDA, tech‑led SMEs adopting data analytics, AI, and cloud solutions often transact at 8 - 10x. Finance is seeing a similar uplift: fintech platforms adapting quickly to regulation attract averages nearer 9.0x.

Notably, higher‑value deals (£5m+) rose by 10% in the first half of 2025, while sub-£1m transactions fell by 15% (ONS). This reflects a clear investor preference for scalable, well‑positioned businesses over early‑stage ventures.

Strategic levers for higher multiples

1. Digital transformation

• Upgrade technology stacks to streamline processes and improve data insight.
• Strengthen cybersecurity - a diligence hot‑spot for buyers.
• Invest in customer experience platforms that demonstrate scalability.

2. Niche positioning

• Target under‑served markets with clear demand.
• Evidence pricing power and customer loyalty to justify premium multiples.

3. Partnerships and capital access

• Consider strategic investment or joint ventures to build scale before exit.
• Use credible advisors to access the right networks discreetly.

4. Regulatory preparedness

• Map out sector‑specific compliance risks early.
• Train management on diligence standards to avoid late stage hold‑ups.

Practical steps for owners

• Run a digital audit: assess current systems and upgrade where gaps exist.
• Commission a market review: benchmark against competitors and identify niches.
• Strengthen networks: join sector forums and connect with potential partners.
• Engage advisors early: prepare the “buyer‑ready” story and data room before testing the market.

Conclusion: readiness drives value

For SME owners in tech and finance, maximising valuation goes beyond riding favourable multiples. It requires a proactive approach - aligning your operations, narrative, and compliance with buyer expectations. The result: reduced risk, protected value, and clarity on when the time is right to move.

Next step: Book a confidential consultation or try our Exit Readiness Calculator to benchmark where your business stands today.

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About Exit Strategy & Solutions

Ethical, expert, exit advice for UK business owners. We help SMEs prepare, grow value, and execute confidential business sales. Our team combines deep M&A expertise with practical business experience to deliver outcomes that exceed expectations. If you're considering your options, we'd welcome a confidential conversation about your specific situation.

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This analysis is based on publicly available transaction data from 25 August - 02 September 2025. Individual circumstances vary - seek specific advice before acting.