Time to buy or sell? When to make your move in today’s M&A market
On 22 January 2026
by Mark Morris, Insider Media
Knowing when to sell a business, or when to start investing in others, is rarely an exact science. It is a judgement call shaped by market conditions, personal ambition, tax considerations and timing.
That calculation has become even more nuanced in recent months, with renewed political uncertainty and fresh signals from Westminster, not least Rachel Reeves’ Autumn Budget, prompting many business leaders to pause and reassess their next move.
To help cut through the noise, South West Business Insider has gathered insights from leading advisers and dealmakers across the region, offering practical perspectives on how to navigate the current landscape and make more confident, informed decisions.
Selling your business: When to make the call
For owner-managers considering an exit, the question of when to sell has become more pressing in the wake of the Chancellor’s Autumn Budget. While it offered little in the way of a growth narrative, it did, according to some advisers, sharpen the financial case for selling, particularly around tax.
As Jim Shaw, founder and chief executive of Shaw & Co, explains: “Although it certainly failed to lay the required foundations for economic growth, the Budget did offer some pertinent prompts for any SME owner-managers considering the sale of their business.”
Beyond tax considerations, Shaw believes the decision to sell rests on three core factors. The first is clarity on personal outcomes. “The first is setting your ‘Magic Number’ which is the amount of capital you need to do everything you want in life post exit, from bills to bucket lists.”
The second is choosing the right type of exit, whether that is a full trade sale, a management buyout or partnering with private equity, each with different implications for control, legacy and risk.
Finally, he points to timing. “The best time to sell your business is when you are making the decision, not when you are forced into it,” he says, adding that the strongest exits tend to happen when balance sheets are healthy and the business is performing well.
If Jim Shaw’s advice centres on clarity of intent and selling from a position of strength, the next layer is execution, and avoiding the trap of letting timing alone dictate the outcome.
For Philip Edmonds, senior associate in the corporate team at Roxburgh Milkins, successful deals rely on balance. “In almost all facets of M&A, all parties need to come away feeling like they achieved a deal that they can sell as a ‘win’, and the timing of a deal is no different,” he says.
While buyers are typically looking to acquire businesses on an upturn, when financing is cheaper and strategic impact is greatest, sellers are focused on maximising proceeds and securing the right future for the business. But Edmonds cautions against overplaying the timing card. “A bad deal well timed is still a bad deal,” he says, adding that giving timing too much weight rarely delivers the mutual outcome that good M&A depends on.
Instead, he points to preparation as the biggest differentiator, particularly the factors owners can control. “Getting your house in order is easier said than done,” Edmonds notes, but early groundwork, including stress-testing a business through dry-run due diligence, can make the difference between a smooth process and a value-eroding one.
That preparation also extends to leadership succession. “If you’re looking to sell a business and make a clean break, having the next level of management in place to step up is absolutely essential,” he says, warning that uncertainty at the top is quickly reflected in price.
That is the view of Damocles Merry, a partner in the Bristol-based corporate team at Birketts, who stresses that timing is often as much a personal consideration as a commercial one.
“Timing is often a personal thing but if contemplating an equity event for your business, engage advisers early and embrace their guidance - they can lighten the load and help you spot potential bumps before they become obstacles.
“A good law firm, in particular, brings a wide range of expertise across tax, employment, real estate, regulatory issues etc., which is essential in an M&A deal where there can be lots of variables.
“Choose someone who will calmly guide you through this critical moment for you, someone who can put forward both strategies and solutions and provide clear recommendations when challenges arise.
“This is where your adviser’s experience is invaluable.”
If advisers help business owners navigate the deal itself, the next challenge is understanding what happens once the ink is dry, and recognising that a sale is rarely a clean break.
For Adrian Hemmings, corporate partner at Simpkins Edwards, the right time to sell often comes down to preparation and clarity of purpose, rather than a single market moment.
“Often the right time to start thinking about selling is summed up best as ‘there’s no time like the present’. Preparing a business for sale can take years if you want to achieve the best sale value and terms,” he says, adding that clear goals — whether retirement or a new venture — should shape succession and exit planning early on. He also cautions against waiting too long, particularly if enthusiasm or performance starts to dip.
Once an owner commits to selling, Hemmings stresses the importance of plotting a clear route through the process. “It’s helpful to plot your ‘critical path’ when planning,” he says, from strengthening operations and reducing owner dependency to ensuring tax structures, contracts and financial reporting are in order well ahead of a transaction.
Even after completion, challenges can remain. “Any earn-out can be a challenging period,” Hemmings notes, particularly for entrepreneurial founders adjusting to new constraints. His overarching advice is simple: “Be clear about what you want and keep this end goal in sight.”
Buying a business: Growth by design, not by chance
If selling is about timing and readiness, buying is about intent. For many ambitious businesses, acquisition remains one of the most effective ways to strengthen a market position, or to accelerate entry into an entirely new sector.
As Jim Shaw, founder and chief executive of Shaw & Co, explains: “For those looking to buy a business, meanwhile, it is still the case that it can be the ideal way to solidify a company’s position and offering in its chosen sector, while also providing the perfect gateway for a strategic leap into a completely new marketplace.”
However, Shaw cautions that deciding to grow through acquisition is only the starting point. “Once you have made the decision to grow your business through acquisition, it is vital that you take plenty of time to thoroughly define what you are actually looking to buy,” he says, warning that businesses can too easily talk themselves into deals simply because an opportunity happens to be available.
Finally, he stresses the importance of expert support on the buy side as well as the sell. “You should never sell or buy a business without hiring an experienced corporate finance advisor,” Shaw adds, pointing out that the right adviser can help identify the right target and avoid unpleasant surprises later in the process.
If Jim Shaw’s focus is on buying with intent rather than opportunism, the legal and structural realities of an acquisition quickly bring that strategy into focus.
From a buyer’s perspective, says Philip Edmonds, senior associate in the corporate team at Roxburgh Milkins, timing alone is rarely enough to make a deal stack up. “Buyers want to buy businesses on an upstroke, when financing is at its cheapest, when the deal can make the biggest impact on their existing business,” he says, but that has to be balanced against risk, integration and long-term value.
For buyers, that means looking beyond surface-level performance and understanding how robust the business really is, from contracts and compliance to people and processes. “There’s nothing quite like a sale process for finding any chinks in your armour,” Edmonds adds, which is why thorough due diligence remains essential, even in competitive or time-pressured situations.
Read the full article here: Time to buy or sell? When to make your move in today’s M&A market | Insider Media
