Why Will 70% of UK Buyers Prioritize Due Diligence in 2026

Due Diligence Services

In 2026 UK buyers are predicted to prioritise due diligence services more than ever before, with estimates suggesting that up to 70% of strategic and financial buyers will emphasise rigorous assessments before completing major commercial transactions. As market complexity escalates and the consequences of rushed purchases become ever more significant, the role of advanced due diligence services is shifting from optional checklist items to core strategic necessity. In this article we explore the drivers behind this trend using the latest 2025 and 2026 data and quantitative evidence so that business leaders and dealmakers can understand why due diligence is now a competitive advantage rather than an afterthought.

Understanding Due Diligence and Its Growing Importance

Due diligence refers to the systematic analysis of financial, legal, operational, environmental, and strategic risks associated with acquiring a business or investing capital. It covers everything from verifying historical performance and compliance to assessing future earnings potential and integration risks. Today’s buyers are using due diligence services not only to confirm the facts presented by sellers but also to uncover hidden liabilities and quantify risk in ways that shape negotiation and pricing.

Research shows that 73% of company deals now require external due diligence consultations and professional risk assessments, underscoring the shift toward more structured evaluation frameworks. In 2026 alone the global due diligence services market is expected to exceed USD 1.06 billion in value, up from nearly USD 970 million in 2025, reflecting annual growth driven by increasing regulatory demands and more complex cross-border transactions.

Economic Uncertainty and the Demand for Certainty

One of the central reasons UK buyers are placing greater emphasis on due diligence services is uncertainty in the economic landscape. Although total UK merger and acquisition values reached approximately £57.3 billion in the first half of 2025, deal volumes declined in some sectors even as larger strategic deals persisted, illustrating a more selective buyer environment.  This trend compels buyers to demand deeper insights before committing capital so that they can avoid later financial surprises.

Furthermore the presence of foreign buyers intensifies competition and raises the stakes of dealmaking. In 2025 overseas acquirers accounted for nearly 40% of UK M&A value illustrating how international capital is shaping strategic activity.  As a result buyers in the UK are not only benchmarking local risks but also integrating global standards into due diligence practices to remain competitive.

Regulatory Complexity and Compliance Risks

Regulatory requirements in areas such as environmental social and governance compliance (ESG) and financial reporting are tighter than ever. A significant 80% of UK dealmakers now prioritise ESG due diligence in transactions, with more than half considering ESG factors as potential obstacles to deal closure unless properly addressed.

ESG considerations are now woven into the fabric of due diligence services because regulatory enforcement and stakeholder expectations demand transparency on carbon emissions diversity, data protection practices and social impact. Complying with these obligations not only mitigates legal risk but enhances brand credibility for buyers especially when seeking institutional capital or public market involvement.

The UK regulatory environment is continuously evolving, and new requirements such as detailed profit and loss reporting for smaller businesses will make information transparency more complete. This further stimulates the use of due diligence services so buyers can quickly verify compliance and align with statutory obligations.

Technological Change and the Role of Data Analytics

Another key factor influencing the prioritisation of due diligence is the rapid adoption of technology and data analytics. The modern due diligence process is no longer a manual review of paper documents but rather a comprehensive evaluation supported by artificial intelligence and advanced analytics tools. Industry data suggests that AI tools are expected to reduce review times by up to 50% and improve the detection of risk anomalies by between 20 and 30 percent.

Buyers can now automate elements of financial and legal reviews and gain insights into complex contract structures and digital security posture. This ability to leverage data means that due diligence services are becoming faster, more precise and more strategic than in past decades. Across many deals AI deployment is becoming standard with some firms projecting that over half of due diligence processes will incorporate blockchain and automated benchmarking by 2025.

Sector Specific Demand Trends

Demand for due diligence services varies across sectors but is especially strong in technology healthcare and financial services. In the UK more than 55% of due diligence engagements in 2026 are reported in these three sectors. These industries often involve intangible assets, complex regulatory requirements and higher risk profiles which makes traditional evaluation insufficient without professional support.

In technology deals for example buyers are focused on intellectual property compliance, cybersecurity posture and product viability. The heightened risk of cyberattacks has made cybersecurity due diligence unavoidable. Experts note that inadequate cybersecurity risk assessment can cause significant financial losses post-acquisition with remediation costs often exceeding initial forecasts by millions of pounds.

Healthcare deals involve regulatory compliance, data privacy evaluation and a thorough review of clinical product risks while financial services transactions necessitate extensive regulatory tax legal and financial scrutiny. These factors contribute to a measurable increase in the time and expertise required for due diligence.

The Financial Impact of Thorough Due Diligence

The financial benefits of robust due diligence services are quantifiable. Firms that thoroughly assess risks and validate assumptions prior to acquisition report improved decision making and higher deal success rates. For example more than 25% of firms note improved strategic decision accuracy following comprehensive diligence processes.

Additionally the use of multi layer due diligence frameworks backed by financial modelling tools has led to a reduction in post deal disputes. Firms integrating these frameworks report that the average rate of post acquisition disagreements has dropped from 45 percent in 2020 to around 31 percent by 2025. This reduction demonstrates how quantitative evaluation and risk mitigation strategies can preserve value long after a transaction closes.

Time and Resource Trends in Due Diligence

In 2025 the average time required to complete a comprehensive due diligence review extended to between ten and 12 weeks for initial public offerings and M&A deals, compared to 16 weeks in 2021.  This improvement reflects greater efficiency from automation and better organised data rooms. However the extended timeline is still significant enough to influence negotiation timing and strategic planning.

Buyers and advisors also report that due diligence now often involves longer and more collaborative processes. One study found that investors were spending approximately 64 percent more time on due diligence than a decade ago as they grapple with expanded risk domains and stakeholder expectations. Organizations that fail to allocate adequate time for this stage risk oversight and unforeseen liabilities that can undermine the entire transaction.

Strategic Advantages Beyond Risk Mitigation

Though risk identification remains a key benefit of due diligence services, the strategic advantages extend further. Thorough diligence improves negotiation leverage and pricing accuracy. It allows buyers to shape deal structure based on verified performance metrics, expected future earnings and sensitivity to economic variables. When integrated early it can reveal value acceleration opportunities and identify areas for operational enhancement post close.

Due diligence also plays a critical role in integration planning. By deeply understanding a target company’s operations culture, technology stack and organisational structure buyers can prepare more effective post acquisition strategies thus reducing operational disruptions and aligning expectations among stakeholders.

Why 70 Percent of UK Buyers Will Prioritise Due Diligence in 2026

Looking toward 2026 the convergence of regulatory complexity, economic uncertainty, technological transformation and heightened competition means that buyers in the UK will increasingly view diligence not as a box ticking requirement but as a strategic imperative. Firms that embrace advanced due diligence services will be better positioned to secure favourable deal outcomes, reduce material risk exposures and unlock sustainable long term value.

Quantitative adoption trends indicate that the majority of sophisticated buyers already expect to carry out financial, legal , commercial and ESG reviews as part of their standard diligence workflows in the year ahead. For example the M&A Outlook 2026 suggests that over 77 percent of buyers will undertake legal regulatory diligence and 72 percent will conduct commercial diligence as a matter of course in 2026.

This shift evidences a fundamental realignment in the way buyers approach decision making with a pronounced emphasis on structured evaluation frameworks that encompass more than just financial records.

Looking Forward

As we move deeper into 2026 the importance of due diligence services in the UK corporate environment will continue to grow. Buyers will need to integrate advanced analytics emergent regulation compliance requirements and broader risk assessments into their standard processes. Organisations that fail to do so risk overpriced acquisitions, unexpected liabilities and weaker competitive positions.

Embracing comprehensive due diligence is not merely a defensive tactic; it is a cornerstone of strategic growth and value creation. Whether you are a private equity firm, a corporate strategist or a first time buyer preparing for acquisition due diligence services will be central to achieving confidence in your investment and securing the best possible outcome.

In conclusion the increased prioritisation of due diligence services by 70 percent of UK buyers in 2026 is a rational response to changing market dynamics, rigorous evaluation frameworks and a renewed focus on sustainable returns. By integrating thorough due diligence practices buyers can confidently navigate complexity, optimize strategic decision making and protect value in every transaction.

If you want to optimize your approach to due diligence remember that prioritising expert services is not a luxury but a proven framework for better outcomes in the modern market.