Why Do UK Companies Using Divestiture Advisory Achieve 25 % Higher Multiples?D

Divestiture Advisory Services

In an increasingly competitive and complex merger and acquisition environment, UK companies are realising that strategically divesting non core assets can unlock significant shareholder value. Firms that engage specialised guidance through professional divestiture services consistently achieve superior deal outcomes, including approximately 25 per cent higher valuation multiples compared to peers who pursue divestments without expert advisory support. In this article, we will examine the core reasons behind this performance gap, draw on the latest 2025 and 2026 valuation data, and explore the distinct advantages that structured divestiture advisory brings to sellers in the United Kingdom.

Understanding the UK Divestiture Landscape

The UK M&A market in recent years has been shaped by both volatility and opportunity. According to PwC’s 2025 Global M&A Trends report, UK dealmaking remained resilient even through periods of uncertainty, with strategic sectors such as financial services, technology, media, and industrial services driving significant value creation despite an overall decline in deal volume. In the first half of 2025, total UK M&A value was recorded at £57.3 billion, with an average deal size of £169.2 million, reflecting a selective and strategic investment environment.

Despite these dynamics, companies that enter divestiture transactions without professional planning and execution often leave value unrealised. This is where divestiture services come in  by supporting corporate sellers through meticulous preparation, buyer positioning, and negotiation, advisory teams help clients secure stronger outcomes.

Quantitative Evidence of Multiple Uplift

2025 market data confirms that well advised deals outperform the average marketplace returns. Across UK and European markets, valuation multiples vary considerably by sector and business size. For instance, median EV to EBITDA multiples in the UK mid market hover around 5.3 times earnings, with technology and software companies often commanding multiples above 8 times EBITDA.

One of the compelling pieces of evidence for the impact of advisory comes from comparative trends in advisory valuations. Recent industry analyses have shown that deals involving specialised advisory representation tend to achieve multiples approximately 20 to 30 per cent higher than those without such guidance, particularly in complex divestiture contexts where buyers scrutinise financial quality, growth prospects, and synergy potential. While individual deal results vary by industry, company size, and market conditions, this uplift is broadly consistent with observed outcomes in 2025 and early 2026.

How Divestiture Advisory Creates Value

Specialised divestiture services firms bring several technical capabilities to the table that directly influence achievable multiples:

1. Rigorous Due Diligence Preparation
Buyers pay premiums for predictable and transparent earnings profiles. Advisory teams help sellers organise and stress test financials, legal frameworks, and commercial forecasts before buyers conduct their own due diligence. This reduces risk perception and encourages higher bids.

2. Strategic Buyer Targeting
Unlike a broad auction process, targeted engagement with the right acquirers whether strategic corporates or private equity buyers maximises competition for the asset. An advisory partner with deep sector relationships can identify and engage the most value accretive buyers early in the process, increasing likelihood of offers over market average multiples.

3. Enhanced Narrative Development
In divestitures, how a business is presented matters greatly. Leading advisory teams help sellers create compelling growth narratives backed by robust data, often highlighting recurring revenue streams, scalable products, or unique competitive advantages. These narratives support higher valuation models and justify premium pricing.

4. Negotiation and Structuring Expertise
Professional divestiture services teams have experience structuring transactions that align seller and buyer incentives, including considerations such as earnouts, working capital adjustments, and transition services agreements. These technical elements can materially affect headline multiples and should be handled with precision.

5. Efficient Process Management
Time to close is often correlated with value. Advisory firms help minimise process friction by coordinating documentation, scheduling diligence sessions, and troubleshooting buyer concerns. Faster, smoother transactions reduce risk and often justify higher margins.

Market Context: Sector Multiples and Buyer Appetite

In 2025 UK M&A value data, we see that sectors with strong growth prospects or recurring revenue profiles attract significant valuation premiums. For example, software development businesses achieved median multiples of 8.2 times EV/EBITDA, while IT services firms saw similar high valuations. These sectors are particularly ripe for competitive auctions and rational value discovery conditions where expert advisory amplifies seller advantage.

Conversely, in more cyclical industries such as retail or construction, multiples often fall below 4 times EBITDA. In such environments, structured divestiture services help companies mitigate sector headwinds by creatively packaging assets or highlighting strategic synergies that buyers may otherwise overlook.

The Role of Data and Analytics in 2025 and 2026 Advisory Success

One emerging theme in recent M&A research is the integration of advanced analytics and artificial intelligence into transaction workflows. Reports suggest that the use of AI tools in valuation, market research, and buyer mapping has grown substantially in recent years. For instance, by 2025, approximately 37 per cent of European advisors regularly used AI in market research tasks, significantly up from a minimal adoption rate just two years prior.

These analytics enhance the precision of valuation models used in divestiture advisory, enabling sellers to benchmark against market multiples rigorously and justify premium positioning. When advisory teams can empirically demonstrate value drivers to buyers, the probability of achieving multiples above the market average increases substantially.

Practical Case Studies and Illustrations

Although individual corporate results vary, consider notable transactions reflecting strong valuation performance. For example, in early 2026, global M&A advisory leaders such as Goldman Sachs continued to dominate with record transaction value involvement, evidencing the strength of professional expertise in deal execution. Meanwhile, UK mid market divestitures in advisory contexts have frequently outperformed sector averages, aligning with the quantitative trends discussed earlier.

Real world examples also include private equity deals where UK businesses achieved outsized returns following divestiture preparation that highlighted recurring revenues and growth trajectories, attracting competition and delivering multiples above median sector benchmarks.

Preparing for 2026 and Beyond

Looking into 2026 and beyond, the role of robust divestiture services remains central to maximising deal outcomes for UK companies. Market dynamics suggest that buyers will continue to differentiate on quality of earnings, strategic alignment, and risk mitigation. Sellers who enter the market without specialised advisory risk not fully realizing asset value, particularly in a climate where buyers have abundant alternatives and are increasingly sophisticated in their evaluation criteria.

The Strategic Imperative of Divestiture Advisory

In conclusion, the evidence and market trends from 2025 and into 2026 show a consistent pattern: UK companies that leverage professional divestiture services capture significantly higher valuation multiples in their sale processes. Through disciplined preparation, targeted buyer engagement, and data driven negotiation, advisory expertise can unlock an average uplift of approximately 25 per cent compared to unaided deals. For organisations contemplating divestment, partnering with a seasoned advisory team is not just an operational choice but a strategic imperative that meaningfully enhances shareholder value and drives competitive advantage in the modern M&A landscape.

By investing in structured support and embracing data led methodologies, UK companies can position themselves to achieve superior financial outcomes in a market that rewards transparency, strategic clarity, and execution excellence.