UK business sectors with the strongest acquisition appetite in 2026

By Tony Vaughan, Founder, BusinessWanted.com

Deal volumes have fluctuated over the past two years, but there are clear signs of renewed activity. Global PE dry powder is at record levels and UK-focused funds are under pressure to deploy capital. There is money to deploy. The issue is not a lack of demand, it is that buyers are selective.

What makes a business 'hot' in 2026

• Recurring or repeat revenue
• Strong margins or a clear route to improved margins
• Sector resilience and a defendable market position
• Good quality management information and low customer churn
• Contracted or visible forward income
• Scope for bolt-on growth
• Technology, process or talent a buyer wants to acquire quickly
• A business model that is transferable beyond the founder

1. Specialist business services

Consistently one of the most active UK PE sectors. Compliance and regulatory advisory firms, digital transformation consultancies, and specialist B2B outsourcing firms are particularly sought: recurring client relationships, high gross margins, clear niches, low capex, cross-sell opportunities and consolidation potential.

2. TMT, software, SaaS and tech-enabled services

Vertical SaaS, tech-enabled B2B services, cybersecurity, cloud managed services and data-driven businesses attract stronger multiples than the sector average. Recurring revenue, retention metrics and product defensibility matter more than headline growth.

3. Financial services and wealth-related businesses

IFA consolidation continues. Accountancy consolidators are active. Specialist lenders, insurance brokers and wealth-adjacent service firms attract patient capital and consolidator interest.

4. Healthcare, care and health-related services

Specialist care, primary care, dental groups, health-tech, veterinary and allied-health services. Buyers focus on regulatory quality, staffing, occupancy and referral resilience.

5. Manufacturing and engineering niches

Precision engineering, aerospace and defence supply chain, medical-device manufacturing, specialist industrial equipment, and businesses with genuine IP or accreditations that competitors cannot replicate quickly.

6. Energy transition, infrastructure and environmental services

Waste and recycling consolidation, EV infrastructure, energy-efficiency services, environmental compliance, water and utilities-adjacent businesses. Regulation and long-run demand support acquirer confidence.

7. Logistics, supply chain and fulfilment

Specialist last-mile, temperature-controlled logistics, e-commerce fulfilment, freight-forwarding niches and technology-enabled distribution. Buyers avoid generic haulage unless there is scale and specialism.

8. Food, drink and resilient consumer categories

Premium own-label manufacturers, functional foods, specialist drinks, contract food service and health-oriented consumer categories. Buyers avoid discretionary consumer categories exposed to margin compression.

9. Education, training and skills

Corporate training, professional accreditation, apprenticeships, vocational skills, EdTech and children's education services. Recurring revenue and regulatory positioning drive multiples.

10. Property services, facilities and building compliance

Facilities management, building compliance (fire, electrical, gas, environmental), specialist property maintenance and property-adjacent professional services. Recurring service contracts and regulatory pull support consolidation.

What buyers will avoid even in hot sectors

Founder-dependent businesses, poorly documented operations, high customer concentration without mitigation, weak or inconsistent margins, unresolved legal or compliance issues, inability to evidence earnings, and operations too chaotic to integrate. Sector tailwinds do not rescue a poor business.