The latest KPMG UK Private Equity Review data makes one point crystal clear: while many regions saw private equity activity soften, the Midlands proved unusually resilient – an important signal for UK M&A activity. In fact, it was one of only two UK regions where PE deal volumes increased in 2025.
At Champions, we work with ambitious businesses and investment partners across the UK, and we’ve long believed the Midlands remains one of the most affluent business regions in the country. Not ‘affluent’ in a headline-grabbing way, but in the sense that really matters to investors, from depth of talent and concentration of capability to repeatable routes to growth.
So why did the Midlands buck the trend, and what does it mean for businesses looking to raise capital, acquire, or scale?
In many ways, the answer comes down to future investment trends ...
The Midlands bucked the national PE trend
According to KPMG’s figures reported in the Midlands business press, 188 PE-backed transactions completed among Midlands firms in 2025, a 2% year-on-year rise, while UK-wide deal volumes fell by around 10%, a standout datapoint within UK M&A activity.
A few details beneath the headline are just as important:
Deal momentum strengthened in H2, with 99 deals after June vs. 89 in H1
Bolt-ons led the way (a sign of buy-and-build confidence), with 118 bolt-ons in 2025.
Buyouts surged: 38 completed, reported as a 90% increase vs the prior year.
The Midlands accounted for more than 10% of total UK PE activity (by backing/activity as reported).
Investors kept finding businesses worth backing, and platforms worth building on. This matters for UK acquisition finance, because buyouts typically depend on the availability and pricing of debt alongside equity.
What the Midlands’ resilience signals for UK M&A activity and 2026 predictions
When PE activity holds up in tougher conditions, it’s usually because the region has structural advantages, not just short-term tailwinds, which is exactly the kind of factor shaping UK M&A activity right not.
The Midlands benefits from a powerful mix:
Advanced manufacturing density (real, investable supply chains)
The Midlands is consistently highlighted for its manufacturing footprint and cluster strength, including automotive and medical technologies, with a notably high concentration of manufacturing employment.
Global mobility and automotive capability
The West Midlands is positioned as a global centre for automotive R&D and future mobility, supported by a deep supply chain and strong industrial heritage. This is exactly the kind of ecosystem that attracts strategic capital.
Research-intensive universities that feed commercial innovation
The region isn’t short on talent or IP. Midlands Innovation brings together eight research-intensive universities (including Birmingham, Warwick, Nottingham, and others), strengthening the pipeline from research to commercial outcomes.
This combination creates a steady stream of businesses that are attractive to PE, which are specialist, as well as defensible and scalable. It’s a small but telling indicator of future investment trends in UK M&A activity: buyers are leaning into regions with dense capability and clearer routes to growth.
Affluence is investable momentum
When I talk about the Midlands being ‘affluent’, I’m talking about business affluence:
Operational depth: firms with genuine engineering or service capability
Talent and leadership: management teams who can execute growth plans
Scale potential: a market where bolt-ons and platform builds are realistic
As shown by 2026 predictions, it’s also a region being actively shaped for growth. For example, the West Midlands Investment Zone is explicitly geared towards supporting growth in advanced manufacturing (including EV/battery tech and related digital platforms). That focus offers a clear read on future investment trends, particularly around advanced manufacturing and enabling digital platforms.
Put all that together, and you get a region where PE can still do what it does best, as shown by current UK M&A activity. Back quality businesses and create value through strategy and execution.
Buying a business in UK: What the 2025 Midlands data means for acquirers
For those thinking of buying a business in UK, the data shows that, if PE appetite is holding up, it creates real opportunity, but only for businesses that are properly prepared.
Seen through the lens of 2026 predicitions, in practice, that means:
A clear growth story (organic and acquisitive options where relevant)
Commercial grip, with repeatable revenue, retention, margin drivers, and pipeline visibility
Operational readiness through reporting, KPIs, governance, and leadership depth
A well-thought-out value creation plan that an investor can believe, and help deliver
If you’re planning an acquisition, understanding the realities of UK M&A activity, as well as what funders want to see in reporting, cash flow and integration plans, can make the process faster and less disruptive.
How Champions supports private equity outcomes
At Champions (UK) plc, our Private Equity Advisory work is designed to help businesses and investors turn capital into measurable growth, from early-stage preparation through to transaction support and value creation.
Our PE page outlines our focus on using industry knowledge to uncover growth opportunities (including entering new markets, expanding product offering, diversifying services and transforming business models), alongside deep experience across M&A and due diligence.
For businesses navigating UK M&A activity, whether that’s preparing for investment or evaluating options, or even driving a buy-and-build strategy, we’d be happy to share what we’re seeing in the market and how we support clients across the PE lifecycle.
Get in touch via our online contact form to find out more about our work within the private equity world via our Private Equity Advisory page, or call us 08453 31 30 31.