Inflation hike drives more SMEs to consider selling their businesses

UK SMEs Eye Big Moves in 2025 – But Are They Ready?

According to fresh research from strategic advisory firm K3 Advantage, a growing number of small and medium‑sized businesses in the UK are itching to sell, invest or refinance in the next year. But just because the idea sounds tempting doesn’t mean they’ve got the inside scoop on how well their own companies are really doing.

The Numbers That Stagger

41% of surveyed SMEs now think about a sale or a capital boost in the coming 12 months – a jump from the last year.
Only 11% explored an exit in 2024, but that figure is expected to climb to 14% in 2025 – a 27% rise.
Yet, 63% acknowledge that data insights have become more critical than ever. Ironically, 40% feel their own gut‑check is at odds with the numbers they have.

What’s Holding Them Back?

In today’s cut‑throat market, you can’t just rely on instinct. Rights‑clicking on the “how things are going” question reveals that many owners lack access to reliable data – the holy grail for making a solid sale or refinancing decision.

Key Takeaway

Even as excitement builds, SMEs face a major hurdle: accurate, actionable data is still a scarce commodity. Until they plug this gap, big‑financial moves might be more dream than reality.

Data blind spots and disconnects

When Numbers Talk, Business Gets Confused

Picture this: 45 % of managers proudly claim they’re in the data club, and 42 % feel that crunching numbers actually helps them make smarter choices. Yet, when the auditors dug a little deeper, a whopping 64 % admitted they’re not even using a proper finance system, and only 22 % boast a KPI‑reporting platform. Big oops!

Data Dreams vs. Reality Check

It turns out that optimism about business data can be a bit like putting a fancy name tag on a rusty kettle—looks good, but the content is still just water and ash.

Half the companies think they have meaningful data in their pockets.
Almost a third believe the data actually helps them choose smarter actions.
But the same people say that most don’t enjoy a comprehensive finance system.
Only a handful have a system that can keep a tidy KPI report log.

The White‑Paper Nut

What happens when you need to pull your cards out for a big deal, like selling the company, raising capital or refinancing? Half of the firms (52 %) admit they can’t even directly see their management accounts for the past three years. Even when they do show up, they only dip‑dip into: Profit & Loss, Balance Sheet, and Cash Flow.

“We’re Fine!” — The Classic Mistake

Founder Sam Phillips of K3 Advantage says the whole thing is a glaring disconnect. “Sure, your data might help with day‑to‑day tasks, but if you’re not genuinely listening to it, you’re missing out on the real story—growth potential, future risks, and best‑case scenarios. That story is what investors love.”

He adds: “Business leaders often think they’re all set, but in reality, they’re off track even if they’re not thinking about selling any time soon. Improving data visibility and quality isn’t just about making the next handshake smoother; it’s about boosting the bottom line from day one.

Key Takeaway

Data optimism is real, but it needs action to be useful.
Without a proper finance platform or KPI reporting, you’re basically blowing a trumpet in a crowded room—no one hears the tune.
Better data quality = better decisions = higher value when the time comes to go big.

Business optimism

Business on a Tightrope, Mostly Confident

It turns out that 73% of small and medium‑sized firms admit the day‑to‑day grind feels harder than ever. Yet their nerves aren’t as frayed as one might think.

What SMEs Are Doing Right Now

Cost‑cutting spree – 40% of companies have trimmed their budgets over the last year.
Flexibility is key – Many have stretched their resources to keep the ship afloat amid market turbulence.
Not all looking for a sale – The urge to sell or take on financial moves isn’t a sign of gloom; instead, it shows proactive hope.

Feeling the Buzz Despite the Pressure

Even with the strain, 75% of business owners say they still feel upbeat about tackling the challenges ahead.

Why They Doubt Less About Selling

Readiness for a sale? Hardly a fait accompli. A solid 52% of company heads believe their businesses are solid bets for potential buyers, signaling a bullish outlook that even the toughest markets can’t dent.

The value of robust data

Why Iglu Tech Group’s Latest Move is a Masterstroke

Iglu Tech Group is already a top‑dog when it comes to Digital & Cloud Transformation in the UK, and they’ve got a strong partnership with Microsoft. But they’re not stopping there. They’re on a mission to grow bigger, so they set their sights on Impreza Computer Services and are working hard to make that acquisition happen.

The Money Game: Pre‑Lend & Due Diligence

Getting a pre‑lending deal in place meant Iglu had to raise capital quickly. That’s one part of the plan. The other part? Plunging into clean, thorough financial due diligence so that nothing sneaks by. If there were gaps in Impreza’s financial data, they had to be ironed out—because no one wants surprises when you’re buying a company.

Key Voices From the Front Lines

Jason Yeoman, Managing Director, Iglu:

“The devil is in the detail. It’s the same with M&A. Never more have I leaned on data to guide us when a firm looks promising. Truth lives in the numbers. While stories and feelings matter, tossing out the emotional noise lets us make pragmatic, fact‑based decisions. Emotional bias often tips entrepreneurs off‑balance. Data‑driven advice, therefore, not only spots where value lies, but it also sharpens performance, efficiency, accuracy, and overall worth.”
Alexander Wyndham, Managing Director, Sun Capital Group (which backs K3 Advantage):

“You can’t overstate the importance of a solid data strategy, especially when you’re courting investors or refinancing. Too many small‑to‑mid‑sized businesses think the data they keep for day‑to‑day operations is enough, but that’s not the case. You need a broader, forward‑thinking data plan to support big moves. If you’re not planning ahead, your valuation could drop and securing financing becomes a hard chase. Leaders who plan often find a wider array of options later on.”

Bottom Line

For Iglu, this isn’t just about acquiring another company; it’s a full‑scale exercise in making clean, data‑rich decisions. By tightening their financial picture and sharpening their data strategy, they’re setting up themselves—and any future investors—for success. And hey, if someone thinks money and numbers aren’t exciting, they’re missing out on the best part of business: turning data into doors of opportunity!