PE-backed businesses targeting international expansion

A majority of private equity-backed businesses in the UK are seeking to enter new international markets, with a growing appetite for overseas expansion emerging in spite of persistent geopolitical and economic challenges.

According to the latest Economic Engine report from BDO, 64 per cent of PE-backed businesses say they are seeking to enter new international markets, establishing this as the biggest growth opportunity over the next six months.

The report - which polled 500 mid-market businesses (companies with annual revenues between £10 million and £500 million) - found that, while domestic growth is the priority for PE-backed companies, investment is also set to be targeted at territories including the EU, Asia-Pacific and North America over the next 12 months.

Steve Round, partner at BDO in the Midlands, commented: “There’s no doubt that geopolitical uncertainty has made regional businesses take a step back and reassess where investment is being channelled over the coming months.”

“However, what’s clear from our Economic Engine data is that the appeal of international markets remains strong, particularly amongst private equity-backed businesses. They’re intent on making the most of new growth opportunities, whether that’s by tapping into a larger customer base, unlocking new revenue streams, or by diversifying their market presence in overseas territories.”

“While this approach doesn’t come without its challenges, especially in the current climate, PE-backed businesses are well-equipped with the strategic support and funding to explore and execute effective global expansion strategies, whether that’s through M&A, licencing and franchising, exporting, joint ventures, or by starting from scratch.”

BDO’s findings align with recent ONS export figures, showing that international trade remains resilient, increasing by £2 billion (up 6.7 per cent) in January 2026.

The research revealed the differing priorities of independently owned and operated businesses and those backed by private equity. Among independent businesses, 95 per cent said they were planning to increase investments in acquisitions, people, technology and capital expenditure in the UK, compared to just 59 per cent of PE-backed firms.


While targeting acquisitions overseas may seem intimidating, particularly for smaller companies and those with limited experience of M&A-driven growth, international markets in a number of sectors offer growth opportunities that business owners should not ignore.

Ultimately, as with any other deal, the keys to successful international acquisitions are confidence, preparation, target market knowledge, ensuring funds are in place and having the focus and expertise required to get deals done.

While there will be some fundamental differences from domestic acquisitions, as well as more red tape, these are not insurmountable challenges for owners focused on international growth.

To find out more, check out our recent deep dive analysis of how UK businesses can go about targeting and executing acquisitions in overseas markets

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