Despite global economic uncertainty, the Channel Islands continue to show resilience, attracting investment, supporting business growth, and sustaining a strong M&A market.
Mark Ashburn, Partner at KPMG in the Crown Dependencies, explores how the islands are navigating change and seizing new opportunities in a shifting global landscape.
After more than two decades with KPMG Islands Group, I’ve had the privilege of engaging with a wide range of business owners, directors, and leadership teams. These conversations have consistently revealed a shared resilience and, despite recent global volatility, a cautious optimism about the future.
Like many international financial centres, the Channel Islands are navigating a complex and evolving global economic landscape. The resurgence of ‘America First’ policies under Trump 2.0 and the UK’s evolving stance on tax and regulation are creating both challenges and opportunities. One of the most significant developments is the UK’s overhaul of the non-dom tax regime, from April 2025. This change is already drawing enquiries across the financial services sector, particularly from High-Net-Worth Individuals (HNWIs) and Ultra-HNWIs (UHNWIs) seeking more stable and advantageous jurisdictions.
Despite these global headwinds, there are clear signs of momentum and opportunity as we look ahead:
Business retention & growth
Local business leaders across Jersey and Guernsey are reaffirming on their long-term commitment to the islands. From financial services to digital innovation and professional services, there is a clear focus on sustainable growth, talent development, and long-term investment in the local economy.
Inbound investment & job creation
The Channel Islands continue to attract high-quality inward investment. Whether its global firms establishing a presence or regional players expanding operations, this is translating into new jobs, skills development, and diversification of the economic base, particularly in fintech, funds, and private wealth sectors.
Relocation interest
With the UK’s tax landscape becoming less favourable for non-doms, the Channel Islands are seeing a notable uptick in relocation enquiries. The islands offer a compelling combination of fiscal stability, high quality of life, and proximity to both the UK and Europe, making them an increasingly attractive destination for individuals and businesses alike.
Active Mergers and Acquisitions market
Mergers and Acquisitions (M&A) activity remains robust across the islands, with strong interest in sectors such as fiduciary services, technology, and healthcare. This reflects investor confidence in the islands’ regulatory environment and economic resilience and presents opportunities for both strategic exits and growth through acquisition.
Thinking of selling your business?
Whilst there remains uncertainty across the international landscape, the willingness of corporates and individuals to both invest in and acquire Channel Island businesses is a cause for optimism. We are seeing a steady stream of M&A transactions, alongside a growing number of business owners exploring strategic exits or partial divestments.
M&A activity is often a reliable indicator of business confidence and economic outlook. The gradual easing of interest rates since mid-2024 has also made funding cheaper for leveraged transactions, supporting deal flow.
Recognising this trend, we recently launched our ‘Selling Your Island Business’ campaign. A guide designed to help business owners navigate the sale process with clarity and confidence. You can download the guide here.
In conjunction with our colleagues across our KPMG Islands Group, we bring deep experience in supporting both buy-side and sell-side transactions across island economies, from the Caribbean to the Mediterranean. The Channel Islands share many of the characteristics that make these jurisdictions attractive to investors:
- Stable and well-regulated economies
- Favourable tax and legal frameworks
- Robust professional and financial infrastructure
These factors help de-risk investment and create a compelling proposition for both strategic and financial investors.
Tailored support for every sale
No two sales are the same. One of the most important roles of an M&A advisor is to support vendors through the entire deal process, from early preparation and valuation to negotiations and completion.
Involving an experienced M&A advisor to run a competitive process with multiple bidders often leads to better outcomes, both in terms of value and deal structure.
If you have a business that you are considering selling now, or at some point in the future please get in touch for a conversation in complete confidence. Similarly, if you have appetite to invest in a business either in the Channel Islands, or across our wider Islands Group, please contact me to discuss your investment appetite or visit KPMG.
Let’s explore the opportunities together.
Pictured: Mark Ashburn, Partner, KPMG in the Crown Dependencies
