As the UK continues to experience evolution in the M&A market, it’s clear that value creation in 2025 is no longer defined by traditional metrics alone such as EBITDA.

As well as profitability, the M&A market is seeing more investors become increasingly influenced by trends, sector-specific dynamics, and a company’s alignment with long-term priorities regarding technology and regulations.

The UK is seeing deal volumes recovering and buyer appetites getting stronger, especially after the global pandemic and Brexit. There are patterns that show resilience amongst sectors and scalability emerging as crucial valuation drivers when it comes to high performance. Companies in innovative industries are consistently achieving higher valuation multiples to attract the attention of investors.

In this article, we explore cross-sector valuation data and where value is being created based on research conducted by MarktoMarket. We will also explore what makes high-performing sectors so attractive to buyers, how to strengthen your position within a high-growth sector and expert advice from GS Verde Group on how to capitalise on sector trends for long-term business growth.

The Sector Premium and What the Data Reveals

Whether you're preparing for business exit or seeking an investor for long-term growth, it’s essential to gain an understanding of how your sector affects your valuation.

According to MarktoMarket’s insightful ‘UK M&A Valuation Barometer’ report, published in July 2025, the research reveals how business owners can position their business to help maximise value.

The data demonstrates that there is a wide gap between average market valuations and valuations achieved by companies in high-performing sectors. For instance, the data highlights cross-sector deals under £250m where the median valuation multiples were:

• EV/EBITDA: 6.0x
• EV/Revenue: 1.3x

These figures from the report are a nod to the mid-market which has a reliable benchmark.

The report also examines a selection of sector-specific deals in June 2025 outperformed these medians significantly. The sectors include:

• Data Engine
• Drug Development
• Oil & Gas
• AI Automation
• Semiconductors
• Quantum Computing

As a result, these successful sector deals demonstrate a current M&A trend whereby buyers are paying a clear premium for sector-aligned, innovative businesses that show future growth and effective strategy.

Sector Spotlight and Where Value Is Being Created

MarktoMarket’s findings are a clear indication for M&A businesses owners that there are many sectors driving the dealmaking process regarding valuation.

Here are the industries that are commanding the highest premiums in 2025:

1. Technology, SaaS & Artificial Intelligence

In 2025, UK businesses are continuing to embrace the digital era with the technology, SaaS and AI sector taking over the top end of the valuation scale - especially in 2025.

With technology developments playing a key part in business growth, we are seeing data-led platforms, SaaS models, and AI tools become increasingly valuable due to:

• Recurring revenues from high scalability
• Being strategically fit with digital transformation
• Their ability to enhance data, automation, or infrastructure for buyers

2. Healthcare, Pharmaceuticals & Life Sciences

The healthcare and life sciences sector is another example of an industry that continues to attract the interest of buyers due to its structural drivers. There are several factors that help the high-performing sector produce large valuations.

These include:

• Ageing demographics and rising healthcare spending
• Biotech, diagnostics, and drug development innovation
• High regulatory barriers and IP defensibility

3. Clean Energy, ESG & Sustainability Advisory

In 2025, clean energy consultancies, ESG-led platforms and sustainability advisory companies are placed in the spotlight when it comes to valuation – especially businesses with a track record of measurable impact.

The key factors include:

• Utility optimisation and ESG reporting platforms interest
• The aim of increasing the preference of an investor for sustainable assets
• Corporate demand for reducing carbon emissions and regulatory compliance

4. Semiconductors & Advanced Manufacturing

The UK is also experiencing a shift in the advanced manufacturing sector, with a renewed focus and further support regarding:

• AI infrastructure and high-speed data connectivity
• Strategic autonomy in semiconductors and defence
• Strong intellectual property and preparation for market

What Makes These Sectors Attractive to Buyers

As well as their high growth potential, a strong reason why these sectors are seen as attractive in 2025 is based on how they reflect the priorities of buyers. In these sectors, businesses tend to offer:

• Predictable demand: Services such as sustainability and digital infrastructure are all considered necessary and relevant – with investors attracted to the sector resilience.
• Attractive financial profiles: Businesses with strong margins, recurring revenues, and opportunities for scalability attracting attention from buyers and private equity investors.
• Barriers to entry: This includes protection of IP and prevention of regulatory challenges, creating a reliable and stable position for businesses in the market. Buyers will then view these businesses as a valuable investment opportunity for long-term success.
• Innovation and ESG alignment: With investments in global policy sustainability and environmental, social, and governance growing in popularity, businesses in ESG-friendly sectors are seen as having valuation appeal in the eyes of investors.

How to Strengthen Your Position Within a High-Growth Sector

Within high-growth sectors, investors base their view on how strong a business’s position is by how well-positioned they are regarding scalability and strategic outcomes.

The key differentiators include:

• Scalability: This considers if a business can grow without proportional cost rises
• Revenue structure: Investors ask whether businesses rely on their income and future earnings from projects or recurring contracts.
• Competitive edge: This looks at a business’s unique IP properties such as brand and technology protection.
• Buyer fit: Investors explore whether a business can be easily integrated into a buyer’s portfolio or serve as a platform for private equity investments.

By improving pre-sale valuation figures, businesses can greatly strengthen their position ahead of an exit - particularly well-established businesses in an already strong, high-growth sector.

How GS Verde Group Helps to Strengthen Business Valuation

At GS Verde Group, we know that having strong valuation figures set the foundation for a successful business exit. That’s why we help businesses strengthen their valuation by providing expert guidance and advice tailored to their needs for high-sector growth.

With our end-to-end in-house services and ‘one team’ approach, we combine strategic insight and real-time data to ensure our clients have the best valuation outcome possible for maximised success.

Our multi-discipline team of legal, finance, tax and accountancy experts work seamlessly together to support clients with:

• Valuation benchmarking
• Narrative and positioning
• Strengthening ESG credentials and IP protection
• Identifying and mapping aligned trade acquirers with active private equity investors

Expert Advice from GS Verde Group

At GS Verde Group, we believe that resilience and scalability are powerful factors that are enhancing valuations in 2025. That’s why – with thorough preparation, positioning and a well-executed strategy - your business can experience the best possible valuation figures that stand out in a competitive market.

To ensure maximum valuation, benchmarking your business against sector multiples is key to refining your business growth and identifying the right buyers needed to secure your long-term legacy.

Whether you’re preparing for a business exit this year, or exploring your sale options, we can help you navigate the valuation process with clarity and confidence.