Research by strategic advisory firm K3 Advantage indicates that economic challenges have led to a significant increase in UK small and medium-sized enterprises (SMEs) considering the sale of their businesses in 2025.
The survey, which included 250 SME founders and owners across the UK, found that 41% are more inclined to explore a sale, investment, or refinancing in the coming year compared to the previous 12 months.
The proportion of SMEs contemplating an exit strategy has risen from 11% in 2024 to 14% in 2025, marking a 27% increase.
However, the research indicates that many SMEs may lack access to the comprehensive data necessary to support such critical decisions. While 63% of respondents acknowledged the heightened importance of data insights in the current economic climate, 40% admitted that their intuitive sense of business performance often contradicts the available data.
Furthermore, only 45% of SME leaders expressed satisfaction with their access to meaningful data, and 42% believed they effectively utilize data for informed decision-making. However, 64% disclosed they do not employ a finance system, and a mere 22% have a Key Performance Indicator (KPI) reporting system in place.
52% admitted that they lack full visibility of monthly management accounts for the past three years, which are essential for potential investors or partners.
Sam Phillips, founding managing director of K3 Advantage, said: “This research highlights a significant disconnect. Businesses feel their data supports day-to-day operations, but they overlook the true potential of understanding what the data is really telling them.
“Recognising growth potential and forecasting risks and opportunities present their business for a transaction with the strongest narrative to help them realise their ambitions.”
Despite the challenges, SME leaders remain optimistic. 75% acknowledged the difficult operating environment but expressed confidence in overcoming these challenges. 52% believe their company is an attractive prospect for potential buyers.
