S2 Ep9: M&A Zing (S2EP9) - The Future of SMB M&A: Trends, Tactics & Tech

The M&A Zing

In this special episode of M&A Zing, Alfie and Gareth dive into the future of SMB M&A in the UK and Europe. From the latest deal trends and the rise of search funds, to shifts in lending and the impact of AI tools, they map out what 2025 could mean for acquisition entrepreneurs, search funders, and holdco builders.
You’ll hear about:
✅ Consolidation in M&A tools and lenders
✅ Why SMBs now account for 88% of M&A Activity in the UK
✅ The surge of academic ETA programs at schools like LBS and INSEAD
✅ New funding dynamics and how searchers can stand out
✅ Tax and regulatory changes influencing exits
✅ Sector hotspots: care, nurseries, renewables, accountancy, and more
Timestamps 👇
[00:13] Welcome back & intro with Gareth
[01:19] Market mood: activity staying strong through summer
[02:19] Consolidation in M&A tools and lenders
[03:35] High street banks re-entering SMB lending
[04:44] Surge in UK SMB deals (88% of transactions in H1 2025)
[06:34] Why the mid-market is driving activity
[07:38] The US vs UK deal landscape
[08:59] The role of acquisition entrepreneurs in scaling SMEs
[09:47] Growth of ETA education in Europe (LBS, INSEAD, Erasmus)
[12:15] Family offices and LP funding dynamics
[15:14] Institutional investors & need for high-profile exits
[17:33] Challenges for traditional searchers vs. experienced entrepreneurs
[21:20] Larger search phases, more investors per fund
[25:25] How searchers can stand out: experience, sourcing, and bias for action
[33:19] AI and tech reshaping sourcing & diligence
[38:29] Demographic drivers & tax changes accelerating exits
[43:10] Rise of Employee Ownership Trusts (EOTs) in the UK
[47:25] Sector outlook: care, nurseries, renewables, accountancy
[53:37] Why the opportunity remains huge for acquirers
[55:15] New BizCrunch features: Seller Verified Listings & Virtual Data Room
[58:01] Building a modern, AI-ready data room
[59:00] Closing thoughts: keep on crunching
👉 Want to see these trends in action? Explore live Seller Verified Listings or try BizCrunch’s off-market search today: www.bizcrunch.co
Sources 📝
LBS: Entrepreneurship Through Acquisition
https://www.london.edu/faculty-and-research/institute-of-entrepreneurship-and-private-capital/opportunities-and-resources/entrepreneurship-through-acquisition
IESE: International Search Funds–2022
https://www.iese.edu/media/research/pdfs/ST-0629-E.pdf
Poets&Quants: ETAs as MBAs’ Pathway
https://poetsandquants.com/2024/10/28/entrepreneurship-through-acquisition-mbas-pathway-to-business-ownership-growth/
Yale SOM: Reference Guide on European Search Funds
https://som.yale.edu/sites/default/files/2025-04/A%20Reference%20Guide%20on%20European%20Search%20Funds.pdf
DueDilio: 2025 Guide to Deal Sourcing Tools & Platforms
https://www.duedilio.com/deal-sourcing-tools-platforms-2025/
Stanford GSB: 2024 Search Fund Study
https://www.onetoonefunds.com/wp-content/uploads/sites/11/2024/10/2024_Search-Fund-Study_Selected-Observations_Stanford-GSB.pdf
Guardian: Private equity & UK essential services
https://www.theguardian.com/business/2023/aug/04/golden-goose-why-private-equity-is-eyeing-up-uk-essential-services
Nursery Management Today: Why investors buy nurseries
https://nmt-magazine.co.uk/feature/why-investors-buy-nurseries/
Dentons: Energy M&A
https://www.dentons.com/en/find-your-dentons-team/industry-sectors/energy/energy-trading-marketing-and-derivatives/energy-mergers-and-acquisitions
Farrer & Co: M&A trends in 2025: accountancy firms
https://www.farrer.co.uk/news-and-insights/ma-trends-in-2025-accountancy-firms-represent-attractive-targets-for-private-capital-investment/