Positioning Your Business for Growth and Exit in 2026

2025 proved another challenging year for SMEs in the UK, with regulatory reform for Companies, increased taxes and operating costs and geopolitical pressure making for a harsh trading environment, Yet, despite the gloomy economic outlook, dealmaking in the region remained robust.

This article draws on a number of key themes our clients were focused on over the last 12 months and serves to provide some tips for those planning for 2026.

The back end of 2025 has seen interest rates settle on the back of an easing of inflationary pressures making it easier for those looking to borrow for expansion and growth or strategic acquisition. Used sensibly, debt financing can support investment in people, premises or products without surrendering ownership or control of the business.

In 2025 we saw an uptake in equity investment for all types of business, and at various levels in their life cycles. For those looking to raise capital without borrowing, equity investment presents a solid alternative to debt finance. Equity investment is particularly attractive to those businesses looking to leverage the investor’s knowledge and network, allowing the business to build upon its strong potential to accelerate growth – this can be particularly advantageous for those businesses at an early stage in their life cycle.

Equity investments can be raised through a number of options including private equity or strategic investment. Often these are seen as prelude or a lead into a business exit or ownership transition. If your goal is to exit or seek strategic investment for your business this year, planning for this now by undertaking a review of the business, can preserve equity value down the line.  Review your key customer contracts for any change of control clauses that could trigger a revenue drop if triggered by an exit or investment. Review your governance – look at your company registers, share splits and documented shareholdings as against the corporate record at Companies House – do they align?  Is the record up to date?   Note the new requirements that are in force or are being phased in by the Economic Crime and Corporate Transparency Act 2023.

A strong team is often seen as the foundation of a successful business.  Are your employment contracts up to date and compliant with key legislation – are your policies up to date?  Locking in key staff to support with exit, particularly achieving earn outs after completion should be considered – do you have incentive schemes such as employee share options or other awards?

Considering whether the business has the right level of expertise and experience in its professional advisers to support the business and its founders in next steps is also key – do they have a strong track record of supporting others in their journey? At Clarkslegal, not only do we feel we have that level of experience, competence and passion to help our clients succeed, but we have a strong network of trusted advisors who we can work with to help you succeed.

If you would like support with any of the matters outlined above, reach out to our corporate team.