Bristol-based Momentum Corporate Finance has hailed an exceptionally positive year and told Insider: “We will have completed five mid-market transactions by the end of 2025, with an aggregate EV in excess of £200m, along with a number of strategic advisory mandates which feed into the pipeline for 2026”.
James Johnson, assistant director, said the firm advised across a broad mix of mandate covering its full suite of services, from sell-side and buy-side transactions to management advisory
Johnson said it had “delivered excellent results for our clients while continuing to build a high-quality pipeline”.
He told Insider: “We were also proud to celebrate our 20th anniversary earlier in the year, a milestone that reflects the strength of the South West market and the success of our approach of providing the best long-term advice.
“Adding to that, the team was recently recognised with several industry awards, including Regional Corporate Finance Advisory Firm of the Year, which has been a fantastic endorsement of both our work and culture.”
Momentum worked on two stand out deals in particular.
Earlier in the year, it advised Unity5, a provider of compliance software to the traffic management sector, backed by UK private equity firm Synova, on their acquisition of Chipside.
The second is the recent significant investment by LDC in ARC Building Solutions, the provider of passive fire protection and thermal services for the built environment. The transaction represented a successful exit for Beechbrook Capital, with Newable Capital retaining a minority stake as part of the deal.
Speaking about the M&A landscape in 2025 compared to 2024, Johnson noted the year had “marked a period of selective recovery and gradual stabilisation in the UK M&A market”.
“While activity remains below 2024 levels, with H1 deal volumes materially down amid lingering caution around rates and inflation, conditions have clearly improved as the year progressed,” he said.
“As inflation eased and interest rate cuts became more clearly signposted, financing conditions strengthened and confidence began to rebuild.
“This became evident in H2, with a pickup in mid-market activity, more competitive processes for high-quality assets, and renewed engagement from both strategic acquirers and private equity, although deals continued to take longer with deeper diligence and buyers taking fewer “views.”
“By late 2025, the market is in a more balanced and constructive position than it started, ending the year on a far more optimistic footing and setting the stage for a healthier deal environment heading into 2026.”
Looking ahead, Johnson said that while some global uncertainties remain, the fundamentals for UK M&A are “increasingly positive”.
He added: “Valuations have stabilised, buyer appetite is strong, and many businesses that paused exits in recent years are now preparing to transact.
“The recent budget was also relatively benign from a corporate transactions perspective: capital gains tax (CGT) rates were left unchanged, and there was no further increase to National Insurance rates.
“However, the reduction of CGT relief on Employee Ownership Trusts to 50% (from 100%) makes this route less attractive for owners considering an exit and reinforces its primary intended purpose of benefiting employees.
“Taken together, these factors point to a continued rise in corporate sale and acquisition activity as confidence builds.”