EMC’s Regional Corporate Finance Update | August 2026
August 2026
Welcome to our corporate finance review for August 2026.
Deal volumes are below the monthly average for the year, with 72 completions across the South East. This is in line with the pre-Covid seasonal trend, as the traditional summer slowdown in dealmaking has returned.
The month saw UK medium-term borrowing costs reach the highest they have been since 2008, due to the global bond sell-off that developed throughout August. The sell-off was driven by renewed tensions across the Middle East and investor expectations that central banks will likely increase the pace of interest rate hikes, amid rising inflation and energy costs. This presents a headwind for the M&A market, as higher debt costs typically put pressure on buyer affordability and reduce seller valuations.
We are continuing to see AI implementation move at pace in the SME market, with the ONS publishing a report on SME AI adoption last month. The data illustrates the pace of this shift, as the adoption of AI has nearly tripled since 2023, meaning 35% of businesses with 10 or more employees now use AI tools. The figure for smaller enterprises sits at 28%, and the ONS also provided reassuring news on the perception that AI will threaten job security, as around half of newly AI-adopting businesses reported no change to their headcounts, with SMEs opting to train their staff rather than replace them. Businesses have instead utilised these tools to streamline and grow their operations.
This month saw private equity-backed property group LRG agree to acquire the sales, lettings and holiday cottages business of Henry Adams, a 200-year-old estate agency brand with 12 branches across Sussex, Surrey and Hampshire. The deal is one of several acquisitions LRG has completed in 2026, highlighting the common trend of PE-backed consolidators pursuing aggressive buy-and-build strategies.
Elsewhere, Hampshire-based swim school operator World of Swimming has continued its regional expansion with the acquisition of Crest Swim School, adding six pools and more than 700 swimmers across West Sussex to its network of 23 schools. This deal extends World of Swimming’s footprint beyond Hampshire, Dorset, Oxfordshire and Wiltshire, marking a further expansion into the South East.