Welcome to the July 2026 edition of Deal Dispatch, our regular deal round-up.
Market overview
Midlands M&A activity remains firmly on the front foot, with the lower mid-market continuing to outperform despite the initial headwinds created by the Iran-US war. Geopolitical uncertainty has added some caution, but strong appetite for quality businesses and a healthy pipeline of opportunities continue to underpin positive momentum across the region.
At a global level, the conflict in the Middle East has introduced greater economic uncertainty, higher energy prices and increased inflationary pressure, all of which feed directly into dealmaking conditions. Energy markets have been a key transmission channel, with disruption to supply routes pushing up costs and adding volatility across financial markets. This in turn complicates interest rate expectations and financing conditions – an important consideration for leveraged transactions and private equity activity.
Recent political developments culminating in Keir Starmer’s resignation are likely to add a further layer of caution for investors. While it is too soon for this to have materially affected deal flow, it may lead to a more measured approach in the short term, particularly where transactions are sensitive to fiscal policy direction and broader economic stability.
From an M&A perspective, geopolitical tensions are widely cited as dampening confidence and increasing execution risk, prompting purchasers and investors to be more selective and cautious. This typically manifests in practice as longer diligence processes, tighter deal structures, and a focus on downside protection as opposed to a cessation in deal activity.
However, it’s important to balance this with what we are seeing on the ground: the Midlands market in Q1 still showed solid underlying activity and improving momentum, suggesting that any impact so far has been contained. In line with broader 2026 trends, purchasers are continuing to transact but with more discipline around valuation, sector exposure and resilience. In short, the Iran-US war is adding friction and selectivity, rather than fundamentally derailing dealmaking.
Team updates
At PKF Smith Cooper, we recently completed five deals in five days and we are proud to have been recognised as the 6th most active dealmaker in 2025 nationally, reflecting both the resilience of the market and the strength of activity we continue to see on the ground.
We have invested in our people with the appointment of Chloe Fisher as a Manager within the Corporate Finance team, and James Roberts and Brent Kerrison in the Transaction and Advisory Services team.
Sector Spotlight: Self-storage
Despite significant capital targeting the sector, transaction activity across the UK and European self-storage markets remained subdued in 2025, held back by a limited pool of vendors and a number of larger processes that failed to complete. Pricing expectations, data limitations and a shortage of experienced operating teams, particularly outside the UK, continued to create friction.
Investor appetite remains strong, illustrated by US investor Ardent’s entry into the UK self-storage market through a new platform targeting 15 – 20 sites, following the successful deployment of $425m in its US platform. Access Self Storage also appears on course to be acquired for more than £1bn later this year, underlining continued demand for scaled platforms.
Where acquisition opportunities are limited, well-capitalised operators are increasingly choosing to build rather than buy, reflecting both pricing discipline in the investment market and confidence in long-term structural demand.
We are continuing to see strong appetite from acquirers seeking support to raise acquisition finance as operators look to expand and develop their platforms.
- For buyers, this reflects sustained confidence in the sector and a willingness to pursue growth through acquisition where suitable opportunities arise.
- For sellers, current conditions may present an attractive window to exit, particularly as operators pursuing development-led growth face significant cash burn until new sites reach stabilisation.
PKF Smith Cooper remains active in the sector, having recently advised the shareholders of Flexistockage, one of the largest independently owned facilities in Paris, on its sale to Pithos Capital and PGIM under the Zebrabox France brand, as well as supporting UK-based Storagely on its acquisition of U Can Store It – Coventry.
Deal round-up
Read our latest edition of Deal Dispatch, our regular deal round-up, on the button below. If you’d like further information regarding the contents of this document, or you’d like to find out more about how we can help you and your business, please get in touch with our team.
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