The feature, “Metal to Mettle”, examines how the West Midlands deal market is responding to economic uncertainty, changing buyer priorities and technological disruption.

A more selective deal market

The M&A environment has changed considerably over the past two or three years. The earlier abundance of capital and strong competition for assets created favourable conditions for sellers, often supporting ambitious valuations.

The market has since become more selective. Buyers are scrutinising quality of earnings, growth assumptions and strategic fit more closely, while taking longer to assess opportunities.

This does not mean good businesses cannot achieve strong outcomes. Mark’s view is that conditions are becoming more positive for owners of well-managed, differentiated companies, particularly those whose growth is supported by international demand.

For founders considering an exit, preparation and positioning therefore matter more than ever. A compelling track record, credible growth plan and clearly articulated strategic value can help a business stand apart in a market where buyers have become increasingly disciplined.

Where technology meets manufacturing

The West Midlands retains its historic strengths in industrials and advanced manufacturing, but the region’s economy is considerably more diverse than its traditional image might suggest.

Technology, healthcare, professional services, logistics and digitally enabled business services are all contributing to its transaction activity. Particularly interesting is the growing overlap between technology and manufacturing, as specialist software, data and automation become increasingly important within complex industrial environments.

A recent example is Headpoint’s work advising Solihull-based FLAGS Software on its sale to US-headquartered Recur Software. FLAGS develops production-critical quality management and manufacturing control software used within demanding automotive, aerospace, rail and marine environments.

The transaction demonstrated the international appeal of specialist UK technology businesses that combine proprietary capabilities, deep sector knowledge and long-standing customer relationships.

AI is changing the competitive landscape

AI is also beginning to reshape the corporate finance market itself.

The technology is improving the speed and breadth of research, helping boutique firms analyse markets, identify potential counterparties and access investors and strategic buyers internationally. This gives regional teams analytical capabilities and geographic reach that were historically associated with much larger organisations.

AI does not replace commercial judgement, trusted relationships or experienced transaction management. However, used effectively, it can strengthen the evidence behind a process and allow advisors to dedicate more time to positioning, negotiation and the decisions that most directly influence an outcome.

For founder-led businesses, this combination of local senior involvement and technology-enabled international reach can create a broader and more competitive market for an opportunity.

Capital does not always require a full exit

The feature also considers the changing objectives of founders and owner-managers.

An outright sale is not the only route available. Bringing in institutional or private equity capital can give founders access to expertise, funding and an experienced sounding board while allowing them to retain an interest in the business.

Partial exits, equity rollovers and growth investments can help owners reduce personal financial risk while continuing to participate in the company’s future development. The right structure will depend on the founder’s personal ambitions, the needs of the business and the opportunities available in its market.

Understanding those options early allows an owner to make a considered decision rather than waiting until personal or commercial circumstances dictate the timing.

The full “Metal to Mettle” feature is available in the November 2026 edition of ICAEW Corporate Financier.

If you would like to discuss your company’s strategic options, future growth or longer-term exit planning, please contact the Mark Wilson for a confidential conversation.