Up to a Third of Aim-Listed Firms Predicted to Face Takeover Bids in 2025

Depressed valuations, low liquidity, and foreign interest are driving a surge in acquisition activity targeting smaller UK companies.

Investment bank Peel Hunt forecasts a significant wave of takeovers for small and mid-cap companies listed on London's Aim market in 2025, citing undervalued stocks and low liquidity.
Approximately one-third of Aim-listed firms valued between £50 million and £250 million are considered vulnerable to acquisition due to structural market challenges and lack of investor interest.
Falling interest rates, a stable UK political landscape, and increased boardroom interest in mergers and acquisitions are fueling the anticipated surge in buyouts.
Private equity and foreign buyers are expected to dominate the acquisition landscape, with technology, media, industrials, and support services sectors identified as particularly at risk.
The trend follows a record year in 2024, during which 5% of UK-listed companies faced bids, and 88 firms delisted from London markets, raising concerns about the UK’s financial competitiveness.