Private capital has developed a clear appetite for British companies, and 2026 has put that on full display. Companies listed in London still trade below the prices paid for similar firms in the United States and parts of Europe, and investors with plenty of cash and patience have moved to buy them. Every business that leaves the public market makes the same point, that good companies are worth more than their share price suggests.

It shows what long-term buyers value, where they find worth the market has missed, and how owners of strong businesses can gain from it, whether they plan to sell, to buy, or simply to build something better. Seen this way, the opportunity sits on both sides of every deal.

The biggest example of the year came in June, when Intertek, the FTSE 100 testing and certification group, agreed a takeover by the Swedish firm EQT worth around £10.6 billion including debt. It ranks among the largest take-privates in British history, and it followed the asset manager Schroders, which agreed a £9.9 billion takeover by the American investor Nuveen earlier in the year. The thinking behind these deals is useful for any company that wants to be valued as highly.

Britain’s discount

The businesses drawing the most interest share one quality, clear and steady earnings. Long-term contracts, subscriptions, loyal clients and repeat revenue give a buyer confidence that the cash will keep coming, and that confidence is what lifts the price. Intertek is a good example, since its clients in more than 100 countries need its certifications to sell goods in regulated markets and rarely switch supplier. Services with this kind of repeat income can fetch valuations of about 9x to 13x EBITDA, well above asset-heavy or cyclical firms.

Buyers also pay for a strong market position, real technical know-how and, importantly, a business that does not rely on one person. A firm with a capable management team and settled day-to-day operations is worth far more than one where all the knowledge and relationships sit with the founder. The lesson works both ways, because the traits that attract a buyer are the same ones that make a business stronger to keep. Andre Lacroix, who leads Intertek, put the case to shareholders plainly.

What buyers are really paying for

The businesses drawing the strongest interest share a common quality, which is the visibility of their earnings. Long-term contracts, subscription models, retained clients and recurring service revenue give a buyer confidence that cash will keep arriving, and that confidence is what commands a premium. Intertek illustrates the point, since its clients across more than 100 countries need its certifications to sell goods in regulated markets and rarely change provider. Recurring-revenue services of this kind can attract valuations in the region of 9x to 13x EBITDA, well ahead of asset-heavy or cyclical businesses.

Buyers also reward defensible market positions, technical differentiation and, tellingly, businesses that do not depend on a single person. A company with a capable management team, delegated responsibility and operational maturity is worth considerably more than one where knowledge and relationships rest with the founder alone. The lesson runs both ways, since the qualities that attract a premium bidder are the same ones that make a business stronger to keep. Andre Lacroix, who leads Intertek, put the case to shareholders directly.

The Sellers’ advantage

Conditions for owners of quality businesses have rarely looked more favourable. Private equity firms are sitting on record amounts of cash and are under pressure to spend it, and a recent Deloitte survey found that 90% of private equity firms expect to do more deals, worth more, in 2026. With so much money chasing a small pool of strong assets, sellers hold real bargaining power, and UK mid-sized companies remain among the best priced in the developed world.

The owners who make the most of that tend to prepare early. Clean, audited accounts, a solid growth plan and a team that can run the business without its founder all speed up a sale and raise the price. A sale need not mean walking away either, since an equity rollover lets an owner take cash now while reinvesting alongside the new backer and keeping a share in the next stage. Even the largest deals work this way, and Intertek’s buyout kept the Abu Dhabi funds ADIA and Mubadala as minority partners beside EQT.

A Buyers’ opening

The same discount that pulls private equity towards London’s listed names runs through the private mid-market, and it is a real opening for anyone with money to put to work. Fragmented industries with steady, repeat revenue reward consolidation, where one well-run business buys up smaller rivals and builds a scale that raises the value of the whole. Family offices, once happy to invest through funds, are now buying and running these businesses themselves, especially in essential services and repeat-revenue trades.

The appetite is easy to see in business services. Bridgepoint began 2026 by buying the advisory firm Interpath, one of several deals that show steady demand in the sector. For an owner or investor who knows a sector and can be patient, the model is within reach, since buying a solid business at a fair price and improving it over time has paid off in far tougher markets than this one.

A page from the private-equity playbook

The most useful lesson of the take-private wave has little to do with selling. Private equity now makes its money by making companies genuinely better, through tighter focus, faster earnings growth and sharper day-to-day management, because the cheap debt and rising valuations that once did the work have gone. Any owner can copy that approach without a single deal, by focusing on the core of the business, building repeat revenue and running the company more professionally.

The freedom that private ownership brings is worth copying too. Companies go private so they can follow a clear, multi-year plan without the pressure of quarterly results, and any business can choose to work the same way. Setting a firm strategy, ignoring short-term noise and investing patiently in what pays off over time is open to every owner, listed or not. The companies leaving London are prized for exactly these qualities, and building them is the surest way to be worth as much.