The UK Business Services sector remained one of the country’s most active markets for mergers and acquisitions (M&A) during the first half of 2025. While macroeconomic uncertainty continued to affect parts of the economy, strategic acquirers and private equity investors remained active across professional services, consulting, facilities management, logistics, construction services and marketing businesses.
Polestar Corporate Finance’s Business Services H1 2025 Sector Review explores the latest developments influencing M&A activity, valuation trends, private equity investment and recent transactions across the UK Business Services market. The report also examines wider economic conditions, sector-specific trends and the businesses, investors and acquirers shaping the market during H1 2025.
UK M&A activity increased modestly during H1 2025, with transaction volumes strengthening from Q1 into Q2. Corporate buyers completed around 62% of UK transactions, broadly in line with the two-year average, while buyout activity returned to more typical levels following unusually strong private equity activity in early 2024.
Business Services continued to record one of the highest levels of transaction activity across the sectors monitored in the report, reflecting sustained buyer appetite despite wider economic uncertainty.
Consulting and Professional Services remained the largest Business Services subsector by deal volume during H1 2025.
The report attributes this to continued demand for digital-first advisory services, including compliance, cybersecurity and specialist consulting. It also notes the increasing use of AI-powered tools to support qualified advisers and improve operational efficiency.
Private equity continued to demonstrate strong interest in professional services businesses.
The report identifies recurring revenues, AI-driven operational efficiencies and growing demand for regulatory expertise and data-led advisory services as factors underpinning continued investment activity. Buy-and-build strategies also remained a significant feature of the market, particularly across fragmented sectors including legal, accountancy and facilities management.
Business confidence improved during H1 2025 despite continued economic headwinds.
The report highlights that:
This optimism was supported by interest rate reductions, improving trade sentiment and renewed cross-border M&A activity.
The report reviews valuation performance across several Business Services subsectors, including:
During H1 2025:
Consulting and Professional Services remained the most active Business Services subsector during H1 2025.
The report highlights several factors supporting continued deal activity, including:
Private equity transactions represented approximately 37% of Business Services deals during H1 2025.
The report identifies a number of investors active across the UK Business Services sector during H1 2025, including:
These investors completed or supported transactions across construction services, facilities management, logistics, professional services and accountancy businesses.
Strategic acquirers also remained active during H1 2025.
The report highlights organisations including:
alongside a range of acquisitions completed across consulting, legal and marketing businesses.
The report includes recent UK transactions across multiple Business Services subsectors, including businesses such as:
These transactions demonstrate continued activity across consulting, professional services, facilities management, logistics, construction services and marketing businesses during H1 2025.
The report shows that UK M&A activity increased modestly during H1 2025, with Business Services remaining one of the most active sectors. Corporate acquirers accounted for around 62% of UK transactions, while private equity activity returned to historic norms following exceptionally strong activity in early 2024.
The report highlights continued activity across Consulting & Professional Services, Construction Services, Facilities Management, Logistics, Import & Distribution, Marketing & Communications and Food Service. Consulting and Professional Services remained the largest subsector by transaction volume during H1 2025.
Yes. The report identifies continued private equity investment across professional services, accountancy, facilities management, logistics and construction businesses. It also highlights ongoing buy-and-build activity, particularly within fragmented sectors such as legal, accountancy and facilities management.
According to the report, revenue multiples remained broadly stable across mature Business Services sectors during H1 2025, while EBITDA multiples strengthened during the second quarter, particularly among listed consulting businesses with international operations.
The report highlights both strategic acquirers and private equity investors active during H1 2025. These include organisations such as Accenture, Knights, Brave Bison, Apollo Asset Management, Exponent Private Equity, Tenzing Private Equity and Inflexion.
Key themes identified in the report include improving business confidence, increased adoption of AI-enabled tools, continued demand for specialist advisory services, regional expansion by professional services firms and sustained private equity interest in businesses with predictable recurring revenues.
The report highlights continued transaction activity, improving confidence and sustained buyer demand across many Business Services subsectors, while also noting ongoing cost pressures, labour shortages and changing regulatory requirements that continue to influence business performance and investment decisions.
Polestar Corporate Finance advises shareholders, founders, management teams and investors on company sales, acquisitions, management buyouts, fundraising, business valuations and wider strategic corporate finance matters across the UK Business Services sector.
