iwoca launches M&A platform as SME succession concerns grow

SME lender iwoca has launched a new mergers and acquisitions (M&A) platform, manda, designed to connect small business owners looking to sell with suitable buyers, as new research reveals a significant gap in succession planning among UK SMEs.

The platform aims to simplify the business sale process by bringing buyer matching, financial due diligence and transaction support together in one place.

The launch follows new research from iwoca showing that just 21% of SME owners have a formal, documented succession or exit plan, while a quarter (25%) have given no thought to what will happen to their business when they step back.

The findings raise concerns about succession planning across the UK’s 5.7 million SMEs, particularly as many business owners approach retirement.

Almost three-quarters (73%) of business owners aged 55–64 have no more than a rough idea of their succession arrangements, while just 29% of those aged 65–74 have a formal plan in place.

Half (50%) of SME owners expect to rely on their business to fund their retirement, yet 29% do not know what their company would be worth if sold today.

Tax changes prompt owners to reconsider exit plans

The research also highlights the impact of changes to Inheritance Tax introduced in April 2026.

More than a third (37%) of SME owners said they had altered their succession plans following the changes, with 15% now more likely to sell their business and 8% more likely to close it entirely.

When considering potential buyers, business owners showed a preference for domestic ownership, with 22% favouring a sale to a larger UK company and 20% preferring an existing management team.

Meanwhile, 30% identified an overseas buyer as their least preferred option.

New platform aims to simplify SME acquisitions

Through manda, iwoca is seeking to make smaller business acquisitions more accessible by connecting sellers with buyers, including search funds, family offices and private equity firms.

The platform draws on iwoca’s data covering more than 100,000 SMEs to identify potential acquisition opportunities and match businesses with buyers whose investment criteria align with their requirements.

It also uses financial information, including bank feeds, filed accounts, VAT returns and payroll data, to support due diligence and deal structuring.

Unlike traditional corporate finance advisers representing one side of a transaction, manda aims to coordinate the process between buyers and sellers, charging a fee only when a deal completes.

“Our analysis shows the majority of small business owners have no formal succession plan for the business they’ve built.

“Often the hardest part isn’t finding a buyer, but finding the right one at the right time – someone who understands the business and will take it forward. manda solves that by matching sellers with buyers who actually fit what they’re looking for.”

First acquisition completed

The platform has already facilitated its first transaction, supporting the sale of roofing contractor TRC (Midlands) Ltd to TrueNorth Capital Group.

manda identified the business as a match for TrueNorth’s acquisition criteria, conducted financial due diligence and coordinated the transaction through to completion.

Bradley Lay of TrueNorth Capital Group said the acquisition would support the company’s expansion in the roofing and external envelope market.

“TRC (Midlands) is exactly the type of business we want to bring into TrueNorth. It has an exceptional heritage, longstanding customer relationships and a reputation that has been built over generations.”

Trevor Horne, Managing Director of TRC (Midlands) Ltd, said: “We’d built the business over many years, investing time and money into its creation and growth, so we wanted a buyer who would take it forward properly.”

The launch marks an expansion of iwoca’s offering beyond SME lending into business ownership transitions, at a time when succession planning and access to suitable acquisition finance are becoming increasingly important considerations for the UK’s small business community.