If you’re considering buying a business, you’re probably asking yourself one question before anything else: Is now actually the right time?

The honest answer is that there is rarely a perfect time to acquire a business. Markets rise and fall, interest rates change, confidence fluctuates and economic uncertainty never completely disappears. Waiting for the “ideal” moment can often mean missing opportunities that are available today.

Instead, the better question is whether the right business is available and whether you’re in the strongest position to acquire it successfully.

We’re seeing businesses continue to pursue acquisitions for many reasons. Some are looking to accelerate growth, others want to expand into new markets, strengthen their service offering or acquire talented teams and specialist expertise that would take years to build organically.

Over the last couple of years there has been a lot of economic uncertainty driven by changes of government along-side global politics. Consequently, we have seen that companies looking to acquire businesses are showing more caution and undertaking increased due diligence, so transactions are taking longer to complete.However, we have noticed that some level of optimism is recurring. Funding is now available to good quality businesses with a coordinated acquisition strategy and a sensible deal structure. Additionally, acquirers have more leverage since some sellers want to avoid future rises to Capital Gains Tax, or they are fed up with ever-increasing regulation.

What does the acquisition market look like in 2026?

While the pace of mergers and acquisitions has varied over recent years, the market continues to offer opportunities for well-prepared buyers.

Businesses have become more realistic about valuations, funding conditions have improved compared with previous years and many owners are continuing to review succession and exit plans. At the same time, private equity, trade buyers and ambitious owner-managed businesses continue to seek quality acquisition opportunities.

That doesn’t mean every acquisition represents good value. Buyers are becoming increasingly selective. They want businesses with resilient financial performance, recurring revenues where possible, strong management teams and clear opportunities to create additional value after completion.

Greater scrutiny often leads to more realistic negotiations and better-informed decisions.

Why buy a business instead of growing organically?

Growing a business organically takes time. Buying an established business can accelerate growth in ways that would otherwise take years to achieve.

Depending on your objectives, an acquisition could allow you to:

• Enter new geographic markets.
• Expand your customer base.
• Acquire experienced employees.
• Add complementary products or services.
• Increase market share.
• Benefit from operational efficiencies.
• Remove a competitor from the market.

However, acquisitions should never be pursued simply because an opportunity becomes available.

Every successful acquisition starts with a clear commercial strategy.

Ask yourself:

• Why do I want to acquire another business?
• What capabilities am I looking to add?
• How will this business strengthen my existing operation?
• Will the acquisition create long-term value?

What should you be looking for when buying a business?

Today’s buyers need to consider more detailed due diligence than ever before. Financial performance remains important, but it is no longer the only consideration.

Many buyers also assess:

• The strength of the management team.
• Customer concentration.
• Quality of recurring revenue.
• Future growth opportunities.
• Operational processes.
• Technology and systems.
• Legal and regulatory compliance.
• Employee retention.
• Cyber security.
• ESG considerations where relevant.

Ultimately, buyers want confidence that the business can continue to perform after the acquisition is complete.

Don’t underestimate the importance of due diligence

One of the biggest mistakes buyers make is becoming emotionally invested before they’ve properly understood the risks. That’s why due diligence shouldn’t simply be a box-ticking exercise.

It’s an opportunity to understand exactly what you’re buying, identify potential risks, validate financial information and uncover opportunities to negotiate or restructure the transaction.

In many cases, good due diligence doesn’t stop a deal. Instead, it gives buyers greater confidence and helps them complete acquisitions on better commercial terms.

As we’ve discussed previously, thorough due diligence often uncovers both value and risk.

Funding an acquisition

Funding options have become increasingly flexible. Depending on the transaction, buyers may consider:

• Traditional bank lending.
• Private equity investment.
• Vendor financing.
• Asset-based lending.
• Earn-out arrangements.
• Existing cash reserves.

The most appropriate structure will depend on your commercial objectives, available funding and appetite for risk. Seeking advice early can often help identify financing options that support both the acquisition and future growth plans.

Is your business ready to buy another business?

Buying another business isn’t just about finding the right target. You also need to ensure your own business is ready.

Consider whether you have:

• Clear acquisition objectives.
• Sufficient funding.
• Capacity within your leadership team.
• Integration plans.
• Experienced advisers.
• Robust financial information.
• Time to manage the transaction.

The acquisition itself is only the beginning. Much of the value is created through successful integration after completion.

So, is now the right time to buy a business?

The right time to buy a business isn’t determined solely by market conditions. It’s determined by whether the opportunity aligns with your long-term strategy, whether the business has been properly evaluated and whether you’re properly prepared enough to complete the acquisition successfully.

Good businesses continue to change hands in every type of market.

Businesses that approach acquisitions with clear objectives, realistic expectations and expert advice are generally in the strongest position to make successful investments.

How Barnes Roffe can help

Whether you’re making your first acquisition or adding to an established group, buying a business is a significant decision.

Our Corporate Finance team supports businesses throughout the acquisition process, from identifying opportunities and conducting due diligence, to valuation, negotiation, transaction structuring, and completion.

If you’re considering buying a business and want to understand whether now is the right time, we’d be happy to discuss your plans and help you make informed decisions with confidence.

Contact us today.

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