2026 UK Trends: Advisors Lower Divestment Risk by 39%

 

Divestiture Advisory

In 2026, the United Kingdom’s corporate landscape is being reshaped by a strategic focus on risk management, portfolio optimisation, and transformational transactions. Experts are reporting that advisors and consulting firms have succeeded in helping UK companies lower divestment risk by 39 percent through the effective deployment of divestiture services that align with today’s economic realities and future growth prospects. As firms adapt to a challenging macroeconomic environment, volatile global markets, and heightened regulatory complexity, the role of bespoke divestiture services has never been more critical in steering corporate leaders toward outcomes that protect value and unlock hidden potential.

According to the latest UK M&A data, total UK deal values climbed to £131 billion in 2025, representing a 12 percent increase year on year even as the number of transactions declined to 2,991, highlighting a shift toward fewer, higher‑quality engagements and more strategic portfolio reshaping. This trend underscores the rise in demand for specialist advisers who can deliver divestiture services that both mitigate risk and enhance deal value.

UK M&A Landscape in 2025 and Early 2026

The UK M&A market in 2025 demonstrated resilience amid macroeconomic uncertainty, with deal values increasing even as activity volumes softened. PwC’s research shows an increase in average deal size from £34 million in 2024 to £44 million in 2025, a rise of 28 percent. This growth signals that investors are focusing capital on fewer but more strategically attractive assets, with advanced technologies, infrastructure, and digital transformation themes increasingly dominating deal agendas.

Divestitures have returned as a central mechanism for strategic portfolio realignment. Industry analysis from European deal advisers highlights that disposals of non‑core or underperforming assets will continue to be a key trend in 2026, as companies strive to free capital for core growth opportunities.

In this environment, specialist divestiture services have enabled corporate leadership teams to confidently assess their portfolios, identify the right assets to divest, and execute with reduced uncertainty. Best‑in‑class advisors are now integrating predictive analytics, market forecasting, and deep sector expertise to enhance decision‑making throughout the divestment lifecycle.

Why Divestment Risk Matters More Than Ever

Risk reduction in divestment transactions is a function of both disciplined planning and robust execution. In 2025 and into 2026, companies that engage advisors with strong capabilities in risk assessment and operational transformation have seen measurable improvements. While industry averages showed broad caution across the market, tailored advisory support delivered risk mitigation outcomes that industry peers can use as a benchmark.

Market participants frequently cite key risks associated with divestments including valuation uncertainty, regulatory hurdles, and integration risks on the buy side. These challenges have historically contributed to transaction delays, reduced sale proceeds, or failed deals. Through targeted divestiture services, advisors are now quantifying and navigating these risks more effectively, resulting in measurable reductions in downside exposure, including the reported 39 percent reduction in divestment risk.

According to sector specialists, this improvement is achieved through rigorous scenario planning, proactive stakeholder management, and real‑time market intelligence that anticipates pricing shifts and regulatory changes. This has enabled sellers to protect shareholder value while facilitating smoother transitions for buyers.

Key Drivers of 2026 Divestment Trends

1. Strategic Portfolio Restructuring

With economic headwinds and sector disruption affecting corporate strategies, UK companies are prioritising divestments of non‑core assets. A renewed emphasis on strategy over scale has pushed leaders to rethink where capital should be deployed. This connects directly to how divestiture services are being used to reposition portfolios toward future growth areas such as digital infrastructure, artificial intelligence, and sustainable energy assets.

2. Private Equity Dynamics

Private equity activity in the UK remains a bellwether for divestment demand. While overall buyout deals in 2025 were down year on year, data shows a surge in private equity add‑on acquisitions late in the year, and ongoing interest from US and global investors for UK assets. These dynamics are supporting a trend where portfolio companies are strategically trimmed or restructured ahead of sale to align with investor expectations and risk appetites.

3. AI and Digitalisation

The adoption of artificial intelligence and advanced analytics is reshaping how advisors approach divestment decisions and risk forecasting. In sectors such as financial services, technology adoption rates indicate that 75 percent of firms have integrated AI tools into risk analysis processes, with others planning similar implementation within three years. These advancements improve predictive accuracy and allow advisors to model outcomes under multiple scenarios, further reducing risk.

Quantitative Highlights: UK Corporate Transactions

To understand the scale and context of these trends, the following figures illustrate key market activity:

• In 2025, UK M&A deal values increased to £131 billion, up 12 percent from £117 billion in 2024.
• The number of M&A transactions in 2025 was 2,991, down from 3,411 in 2024.
• Average deal size grew by 28 percent year on year, from £34 million to £44 million.
• UK private equity buyout deals rose 19 percent in Q4 2025 compared to Q3.
• Divestments in UK private capital data show approximately 618 companies were divested in 2024, with total exits at cost exceeding £15 billion. 

Looking ahead, WTW forecasts that the UK pension risk transfer market will expand to an estimated £70 billion in 2026, reflecting continued capital flows into structured risk mitigation strategies. 

Best Practices for Lowering Divestment Risk

Advisors and corporate finance teams that succeed in lowering divestment risk focus on a combination of strategic, operational, and technological approaches:

Comprehensive Due Diligence
Effective divestiture services begin with deep investigative work to understand operational strengths, liabilities, and market positioning. This reduces surprises and builds confidence among potential buyers.

Market Intelligence and Timing
Identifying peak windows for engagement based on sector cycles and investor sentiment helps companies reduce uncertainty and secure better valuations.

Integrated Risk Modelling
Using scenario models that simulate regulatory, financial, and macroeconomic impacts empowers sellers to anticipate challenges and adjust strategy. This is one of the levers that has enabled advisors to lower divestment risk by 39 percent year on year.

Stakeholder Alignment and Communication
Engaging internal and external stakeholders early reduces negotiation friction, accelerates deal processes, and positions the opportunity more favourably in competitive bidding environments.

The 2026 corporate landscape in the UK is defined by a strategic pivot toward selective investment, risk minimisation, and purposeful capital allocation. As companies navigate uncertainty, the value of expert divestiture services has become evident in measurable outcomes that reduce divestment risk and unlock shareholder value. Through disciplined preparation, data‑driven insight, and a focus on long‑term positioning, advisers are helping businesses adapt and thrive amid structural change.

Looking forward, the continued integration of advanced analytics, deeper understanding of regulatory landscapes, and evolving investor expectations will shape how divestment strategies evolve. In this context, divestiture services will remain integral to corporate decision making, ensuring that firms not only survive uncertainty but also capitalize on the opportunities that arise from transformation.

In a market where risk is constant and strategic clarity is prized more than ever, the expertise embedded in thorough divestiture services will continue to define successful outcomes for UK companies throughout 2026 and beyond.