Why Are UK Firms Closing Divestments 32 Percent Faster With Expert Advisory?

 

Divestiture Advisory

In the rapidly evolving landscape of corporate restructuring and strategic portfolio management, UK firms are increasingly turning to divestiture services to accelerate and optimise the sale of non-core assets. Recent industry surveys and market data from 2025 and early 2026 show that companies with specialist advisory support are closing divestment transactions up to 32 percent faster than those relying solely on in-house capabilities. This acceleration matters because speed to close directly impacts competitive positioning, shareholder value realisation, and the ability to redeploy capital into higher-growth areas. Against a backdrop of fluctuating mergers and acquisitions (M A) activity across the United Kingdom, the effectiveness of expert advisory engagements in delivering faster and more predictable divestments is becoming a strategic differentiator for executives and boards alike.

The Strategic Imperative for Faster Divestments in the UK Market

The UK deal market has experienced notable shifts in recent years as macroeconomic conditions, regulatory changes, technological disruption, and investor preferences reshape how firms approach corporate restructuring. According to PwC’s Global M A Industry Trends research, total UK M A deal value in the first half of 2025 stood at £57.3 billion, a change in volume from previous years but indicative of ongoing strategic repositioning among corporates. Meanwhile, EY’s latest analysis finds that the total disclosed M A deal value in the UK financial services sector nearly doubled in 2025 from £19.7 billion in 2024 to £38.0 billion, driven by a rise in transactions exceeding £1 billion. In this environment, companies are both acquiring and divesting selectively, with many seeking to streamline operations and reallocate capital to areas such as technology, digital transformation, and core service expansion.

For firms navigating this complex market, divestiture services play a pivotal role in shaping successful outcomes. These services typically encompass financial analysis, tax planning, operational due diligence, workforce transition planning, and market positioning support. When integrated early into the divestment process, expert advisory functions help ensure that transaction preparation is thorough, risk is mitigated, and buyer engagement is effectively managed. The result is a materially faster path from initial strategic review through to closing, often cited by practitioners as up to 32 percent quicker than divestments managed without specialised support.

How Expert Advisory Influences Divestment Speed and Value

The mechanisms by which expert advisors accelerate the divestment process are both practical and strategic. First, advisors bring established playbooks and frameworks that streamline pre-deal preparation, including carve-out planning and asset valuation. Corporate carve-outs are inherently complex due to intertwined operations, shared services, and regulatory compliance considerations. Professional advisors help sellers create clean separation documents and visible financial histories that reduce uncertainty for buyers.

Second, advisors ensure that the target assets are positioned effectively in the market. Through market analysis, sector benchmarking, and targeted outreach to prospective buyers, advisors help surface competitive tension among bidders, which can not only accelerate timelines but also maximise sale price. In sectors where UK deal activity remains robust despite broader uncertainty — such as financial services and technology having an advisor with deep market relationships can be a decisive factor in attracting high-quality bids.

Third, expert advisors support due diligence logistics, a critical phase where many deals stall. By proactively anticipating buyer questions, managing data rooms, and facilitating operational separation plans, advisors minimise friction and avoid last-minute deal kills. According to broader divestment research, companies that focus on structured separation planning generate higher sale premiums and face fewer postponements during due diligence.

Quantifying the Impact: Data from 2025 and 2026

While it is challenging to isolate divestment data from broader M A figures, trends from 2025 and early 2026 provide useful context on the environment in which UK firms are divesting assets:

Deal Volume and Value Trends
• UK disclosed M A deal value in the financial services sector almost doubled in 2025, rising from £19.7 billion in 2024 to £38.0 billion in 2025.
• Despite a contraction in overall deal volume in early 2025, sector investors continued to prioritise strategic transactions and divestitures in areas like technology, media, and industrial services.
• PwC’s industry outlook indicates that 40 percent of UK firms plan to divest non-core assets, particularly within finance and consumer sectors, as part of mid-market M A activity.

These figures demonstrate that while deal volumes fluctuate, the appetite for strategic divestments remains significant. Within this context, firms using divestiture services are better placed to harness these opportunities efficiently, turning intent into completed transactions more quickly and with fewer execution risks.

Case Examples and Sector Patterns

Across the UK, there are high-profile divestment cases that exemplify the strategic shifts driving the need for expert advisory. For example, BP’s sale of a 65 percent stake in its Castrol lubricants division to Stonepeak in late 2025 — valued at approximately $10.1 billion — underscores how major corporations are restructuring portfolios to focus on core energy operations and reduce debt, a trend that requires meticulous divestment planning and execution.) While this is a large corporate example rather than a mid-market transaction, it illustrates the broader pressures that incentivise faster, more efficient divestments.

In mid-market and sector-specific contexts, advisory firms with deep practice area knowledge are consistently delivering results. For instance, specialist advisory teams within professional services firms based in the UK are increasingly engaged in technology, industrial, and business services carve-outs, leveraging sector expertise and buyer networks to accelerate deal timelines. These practices draw on cross-border insights and sector benchmarks to ensure that divestments close faster than competitors’ internal processes alone would allow.

Operational Best Practices for Faster Divestments

To realise speed advantages from expert advisory, UK firms often adopt a set of operational best practices:

Start Early With Advisory Involvement
Engaging advisory teams from the earliest strategic review stage ensures that carve-out planning begins long before a potential sale is announced, reducing bottlenecks and enhancing readiness.

Build Clean Financials and Documentation
Ensuring that the divestiture unit has standalone financial statements and clean operational documentation avoids delays during due diligence and builds buyer confidence.

Create Competitive Tension
Advisors bring structured buyer outreach strategies that attract multiple bidders, which can shorten negotiation timelines and improve pricing outcomes.

Leverage Technology in Execution
Tools such as secure virtual data rooms, automated reporting dashboards, and AI-assisted due diligence analytics help speed up information exchange and reduce review cycles.

Maintain Transparent Communication
Effective, transparent communication with all stakeholders from internal teams to potential buyers — minimises surprises that can stall deals, keeps momentum high, and ensures alignment on deal terms and timelines.

Challenges and Risk Considerations

Despite clear advantages, divestments still carry inherent risks that can slow down execution if not properly managed. Regulatory compliance, geopolitical uncertainties, and valuation gaps between sellers and buyers can create friction. In the UK market, for example, S&P Global Market Intelligence has highlighted a notable decline in private equity deal activity in 2025, with transaction value down significantly in certain segments such as mid-market deals. These kinds of headwinds underscore the importance of expert advisory in navigating complex market dynamics and ensuring that divestments close in line with strategic objectives.

Additionally, not every divestment will close quickly simply because advisory support is present. Deal complexity, macroeconomic fluctuations, and sector-specific issues such as regulatory approval requirements can influence timing. However, expert advisors are equipped to anticipate and mitigate these challenges, often outperforming internal teams that may lack the breadth of transaction experience or specialised networks.

Looking Ahead: Divestments in 2026 and Beyond

As 2026 unfolds, several factors are likely to influence how UK firms approach divestments and the role of divestiture services:

Stable Interest Rates and Market Confidence
Assuming inflation and interest rates continue to moderate, investor confidence is expected to grow, potentially stimulating both strategic acquisitions and divestments.

Sector Tailwinds in Technology and Financial Services
Deal activity in sectors such as technology, media, and financial services remains resilient, creating opportunities for divestments that reallocate capital toward innovation and growth. 

Regulatory Shifts and Tax Policy
Any changes in regulatory or tax policy affecting corporate transactions could impact the timing and attractiveness of divestments, making advisory insight even more critical.

In this environment, firms that proactively partner with experienced advisory teams are not only positioning themselves to close deals faster but also to extract maximum value from each transaction. Closing divestments ahead of competitors can free up capital sooner, strengthen balance sheets, and allow firms to pivot strategically with confidence.

The Strategic Value of Expert Advisory in Divestments

The evidence from the UK market in 2025 and early 2026 underscores that companies utilising divestiture services are not only closing transactions up to 32 percent faster but also navigating volatile market conditions with greater agility and confidence. From structured pre-deal planning to enhanced buyer engagement and diligent execution, expert advisory accelerates deal timelines while mitigating risks that can derail divestments.

As UK firms continue to refine their strategic focus and capital allocation priorities, expert advisory is becoming more than a “nice-to-have” service it is a competitive necessity that helps firms unlock value, streamline portfolios, and position themselves for sustainable growth. With market trends pointing toward ongoing strategic repositioning and selective divestments, the firms that embrace specialised advisory support will likely continue to outperform their peers in both speed and quality of execution. In the evolving world of corporate restructuring, divestiture services will remain central to how UK businesses successfully realise their strategic ambitions.