Exits by UK high-growth companies remain an important mechanism for unlocking value across the startup ecosystem.
However, exiting a business in today’s UK market is no longer the straightforward milestone it once was.
Charles Stanley’s new Exits in the UK report, developed in partnership with Beauhurst, shows that while exit activity in the UK remains elevated above pre-pandemic levels, there has been a shift in exit patterns.
Notably, a move for business owners to sell up and not out of business.
Since 2015, nearly 8,000 high-growth UK companies have exited, with almost 40% of activity occurring in just the last two and a half years.
Analysing the exit trends, the report found three prominent trends that drive the exit landscape.
Acquisitions accounted for the majority of exits recorded since 2015. Peaking in 2021, a total of 1,110 acquisitions took place, with 956 companies acquired by corporate buyers, and 154 by financial buyers.
2024 saw the second-highest number of acquisitions across the period, with 1,069 acquisitions.
More companies continue to be acquired by corporate buyers than by financial buyers. In 2024, 85.7% of acquisitions were by corporate buyers, with the remaining 14.3% carried out by financial buyers. Corporate buyers tend to acquire companies to enhance their current offerings, access new markets, or reduce competition. Financial buyers, on the other hand, include private equity firms, which usually acquire a company to earn a financial return.
While the number of IPOs surged briefly during the favourable market conditions of 2021, they have since reverted to historically low levels.
2021 was an exceptional year for the IPO market in the UK, both in terms of the number of companies listing and the amount raised, the current state of the market leaves much to be desired. Exits in 2021 were bolstered by pent-up demand after the COVID-19 pandemic, as well as the government stimulus measures introduced during the pandemic.
In comparison, Q1 2025 has only seen three IPOs, though their combined amount surpassed the full-year totals recorded in each of the previous three years, marking a strong start for the UK listings market. However, the recent decision by fintech company Wise to have its main listing in New York marks another blow to the UK’s appeal as a listing destination.
Founder-led secondary transactions have become more prominent as an exit strategy since 2015, rising from 650 and peaking at 1,799 in 2022.
This has highlighted the growing importance of partial liquidity solutions in a market where firms are choosing to remain private for longer. These transactions offer flexibility to founders while enabling investors to reinvest their capital without requiring a full exit.
Exits by UK high-growth companies remain an important mechanism for unlocking value across the startup ecosystem. For investors, exits allow for the realisation of equity returns and the reinvestment of capital into new ventures. Founders gain liquidity, often utilising this capital to fund the next generation of startups. These outcomes feed back into the ecosystem, sustaining innovation and entrepreneurial ambition.
Cliadhna Law, Head of Direct & Professional Sales at Charles Stanley said, “The UK’s exit landscape for high-growth companies has continued to evolve over the past decade. These changes have been shaped by shifting market conditions, investor sentiment, and the growing maturity of the startup ecosystem. From 2015 to Q1 2025, nearly 8,000 exits have taken place, highlighting the role these events play in the cycle of capital, talent, and innovation.
“Acquisitions remain the dominant form of exit, driven by both corporate and financial buyers, and IPOs, although less frequent, are important for high growth firms seeking public capital and global visibility. However, exits are no longer confined to an IPO or acquisition, and founder secondary transactions have emerged as a key feature of the modern exit environment. These deals provide liquidity without relinquishing control, offering a flexible solution for founders and investors as companies continue to remain private for longer.
“A more stable exit landscape may be on the horizon, one defined by sustained acquisition activity and signs of a potential recovery in the IPO market. These changes reflect the UK’s increasingly flexible approach to value realisation and the changing priorities of founders, investors, and buyers across the high-growth ecosystem.”
Charles Stanley understands that every exit is personal and is there to help steward the wealth created through exit journeys, ensuring it supports the long-term goals of individuals, families, and businesses. With over 200 years of experience, Charles Stanley remains committed to helping clients navigate change, realise value, and plan for the future.
