UK business sales hit eight-year high as founders weigh up the cost of growth

The number of UK businesses changing hands has risen by around 70% in seven years, as rising costs, founder fatigue and difficulty finding suitable funding add to the pressures on owners looking to expand.

Research commissioned by wealth manager Rathbones and conducted by Beauhurst found that 5,774 UK business ownership sales were recorded by Companies House in 2025, up from 3,393 in 2018. It’s the highest figure in eight years.

Selling can be a positive outcome, allowing founders to realise the value they have built. But Rathbones says its conversations with business owners suggest some are selling earlier than planned because the effort and risk of further growth are becoming harder to justify. One automotive business owner told the firm that sales remained robust, but that profits and quality of life had fallen as overheads and regulation rose.

The strain often reaches beyond the business itself. Separate money.co.uk research found that 77% of SMEs had delayed a personal financial decision, such as buying a home, having children or planning for retirement, because of financial uncertainty or concerns about their business’ future.

Access to funding is a big part of the picture. Rathbones found the UK attracts almost 10% of global venture capital investment, but its share falls to 6% at the breakout stage and 5% at the late-growth stage. By comparison, California’s Bay Area accounts for 16% and 48% at those stages.

The research also found that businesses completing five or more funding rounds were more than three times as likely to create significant founder wealth as those completing just one. While further funding is no guarantee of success, the findings go some way to underlining how important access to capital is as a business develops.

Venture capital is only one route, though, and for many small businesses, borrowing is the more realistic way to fund growth. That makes it worth understanding the options available before pressure builds.

The money.co.uk small business loan journey  is designed to make exploring finance options simple, fast and transparent. Owners answer a few questions about their company, funding needs and what the money will be used for, and are matched with relevant options from a range of UK lenders, so they can focus on products they may be eligible for rather than sifting through unsuitable offers.

Checking likely eligibility is free and does not affect a business’s credit score, although a full application may involve a credit check. If a loan isn’t the right fit, the journey can point businesses towards more suitable alternatives.

Finance won’t solve every challenge facing SMEs, and borrowing isn’t right for every business. But for owners with viable growth plans, understanding what funding is available can help them decide whether to expand, stay independent or sell.