'Fed up' UK Founders Choose To Sell Rather Than Scale

Britain risks becoming a nation of company sellers rather than scale-ups as a growing number of business owners question whether the rewards of further growth still justify the risk and effort, according to Rathbones Group, one of the UK’s leading wealth management firms.

Rathbones, whose advisors work with professionals, business owners and entrepreneurs from its 21 UK offices, analysed* almost 28,000 UK businesses sold between 2018 and 2025, alongside trends in start-up and scale-up funding.

The research found that the number of UK businesses sold each year has risen by 70% over the past seven years, with sales accelerating in the most recent two. Annual sales increased from 4,989 companies in 2023 to 5,684 in 2024 and then to 5,774 businesses in 2025.

While selling a business is often a sign of entrepreneurial success, allowing founders to realise the value they have created and potentially reinvest in future ventures, Rathbones says conversations with business-owner clients suggest many feel fed up and this, combined with a shortage of growth-stage funding is driving many to sell their companies early.

Rathbones’ analysis highlights the challenge of securing capital to help companies grow to the next stage. While Britain attracts a similar share of global venture capital investment at the start-up stage as California's Bay Area, home to Silicon Valley, its share falls to just 6% at the breakout stage and 5% at the late-growth stage, compared with 16% and 48% respectively for the Bay Area.

Richard Greenhalgh, Head of Rathbones’ Manchester Office, says:

"The UK doesn't have a start-up problem. It has a scale-up problem. We speak to business owners who are still generating sales but tell us that the sacrifice and effort required to reach the next stage of growth is becoming increasingly hard to justify and deliver."

“One automotive business owner told us sales remain robust, but as his overheads and regulation have risen, his profits and quality of life have plunged. Another client, who owns a pet food supplier said they have little choice but to keep going but feel squeezed by the costs placed upon them and lack support."

“Manchester has no shortage of investment capital, and private equity and venture capital firms play a vital role in supporting business growth across the region. The challenge is that early-stage scaling can be inherently high risk, making it important to create an environment where investors can be rewarded for supporting promising young businesses through their next phase of development, as well as more established companies."

The analysis also found that businesses completing five or more funding rounds are more than three times as likely to create significant founder wealth as those completing only one, underlining the importance of access to capital throughout the growth journey.

Dominic Hughes, Senior Investment Director at Rathbones’ Manchester office, says:

“Britain creates no shortage of ambitious businesses. The bigger challenge is helping them stay independent long enough to fulfil that ambition and deliver the growth the country needs."

"It isn't hard to understand why some founders decide to sell. Growing a business takes years of effort, personal sacrifice and often repeated rounds of funding. If that journey becomes harder and the rewards become less certain, many will understandably decide to cash in earlier than planned."

"The risk is that businesses with the potential to become the next generation of major British employers are sold before they reach that stage. When that happens, we don't just lose future founder wealth. We risk losing future employers, exporters and regional success stories too."