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If you’re looking to expand your business by merger or acquisition in 2026 – or conversely, divest all or part of your company – the time to plan is now.

M&As are complex, with a long lead time. If you’re aiming to transact, it’s never too early to start preparing. Here we ask: how can you position yourself for M&A success in 2026?

What is the M&A Outlook for 2026?

The UK M&A market countered challenging conditions in the first half of 2025, with the SME segment underpinning much of the activity. Buyers from the US and Europe showed particular interest in UK businesses, driving a total deal value of £71bn.

Looking to next year, PwC believes that – while potential is tempered by uncertainty in the current M&A market – companies with a “well-defined strategy to create and unlock value” will position themselves to capitalise on new opportunities.

Volatility is now the norm – businesses can’t expect (or wait for) perfect conditions, but should prepare themselves to transact so they can act when the circumstances are right.

What does this preparedness look like? If your business is looking to transact – either as a buyer or a seller – what steps should you be taking?

What do you need to do to prepare for M&A?

If you’re planning for a merger or acquisition, your preparations will fall into a number of categories:

Regulatory

• Might the deal trigger a CMA (Competition & Markets Authority) merger control review?
• Might any sector-specific licences or permissions (e.g. FCA, Ofcom) complicate or delay the transaction?
• If you’re in a regulated industry, what regulatory capital or compliance burdens will you face post-deal?

Tax

• Identify the questions you need to ask around tax: for instance:
  • What historic tax issues (corporation tax, VAT, PAYE/NIC) should be uncovered in advance of due diligence?
  • Are there any tax risks from share option plans or equity rewards?
  • Are there any potential IR35 liabilities caused by off-payroll workers?

Structure and Governance

• Is the company up to date with its legal ‘housekeeping’ – things like board minutes, shareholder agreements, Companies House filings, corporate reporting?
• Does the company have a published tax strategy, if required? Does this strategy align with its broader risk approach?

Commercial, Financial and Operational Due Diligence

• What is the target’s market position? Are there factors that threaten or could improve this?
• Does the business have a concentration of risk due to an over-dependence on a small number of suppliers or customers?
• Is there a risk you will lose or need to renegotiate any commercial contracts (supplier, customer) on acquisition?
• Does the business have up-to-date management accounts, audited accounts, cash flow analyses and forecasts?

People and Employment Risks

• How will Transfer of Undertakings (TUPE) rules apply on acquisition? What liabilities might arise from transferring employees under UK law?
• Is there a risk that you may lose key staff on acquisition?
• Are all employment contracts, benefits and share plans compliant and correctly documented?

Data Protection, Intellectual Property and Cyber

• Does the business bring any data protection risks? Is it fully compliant with GDPR?
• What intellectual property (such as software, trademarks or brand) does the business own or licence? Have these been correctly valued?
• What cyber security measures does the business have? Do you need to be aware of any historical data breaches or cyber issues?

Communications and Stakeholder Management

• How do you plan to communicate with stakeholders, including employees, customers and regulators?
• How will you ensure communications are secure, accessible to all and don’t disrupt work to complete the merger or acquisition?

There are other, post-merger or acquisition considerations (which you will need to plan for before the deal closes), but let’s focus on your preparations – and particularly the due diligence and information sharing elements.

M&A documentation: the fundamental – but complex – prerequisite

The documentation needed for listed companies’ M&A can be complex. It’s not just the compulsory offer or scheme document; there are numerous other documents that need to be published and shared, often to strict timelines.

For the design and production of all of these, you will want to find a partner who can support you throughout the whole process. Creating professional documents relies on essential yet often-overlooked skills like typesetting, proof-reading and fast turnaround production; bread and butter for a dedicated financial printer, but making a significant difference to your documentation.

Personalisation, data management and fulfilment demand an attention to accuracy and detail that only comes with experience. Finding a partner with in-depth knowledge of this part of the M&A process is essential.

Even better if your chosen partner has experience of working with the major registrars. A company that understands their requirements and may even have a template library of the various forms and proxy cards needed, can help to speed and smooth your M&A process.

Once you’ve created your documentation, you need to share it. A virtual data room is an imperative here, allowing those involved in the transaction to see all your data while giving you confidence that it is secure, accessible only to those you choose, and provides metrics that enable you to track access.

We identified earlier that due diligence across a number of areas – financial, operational, commercial – is an integral part of the M&A process.

An online data room can also host this due diligence information. This not only provides instant access to those who need it while maximising security, but takes away the administrative burden of the transaction – allowing your teams to focus on deal-critical decision making.

Trust, transparency, and efficiency are essential every step of the way when undertaking a merger or acquisition. Perivan has supported many of the UK’s public M&A transactions for years. With unrivalled expertise, we are beside our clients at every stage, delivering quality, integrity and service.

Perivan ensures excellence, security, and efficiency throughout your deal. Find out more about our M&A documentation expertise and our market-leading Engage data room, or contact us for more insight.