How can I increase the value of my business?


Neil Morrow
Employee Benefits Consultant
The E B Partnership
neil.morrow@theebpartnership.co.uk 

 

Your business will be more attractive to a potential buyer if it shows strong, consistent financial performance together with a settled employee base where attention has been given to what can be, and has to be, provided for your staff.

Employee benefits can be used to actually reduce your overall cost base. Two examples of this would be 1) retaining staff helps to keep the costs of recruitment down and 2) utilising the likes of salary sacrifice allows the employer to offset some of the costs of pension contributions, while providing employees with a hugely tax efficient benefit.

As well as helping to keep costs down, employee benefits lead to a more long serving and satisfied workforce, which in itself will be attractive to a purchaser and indicates a content workforce with sound business knowledge.

The Pensions Act 2008 requires all employers to make contributions into a pension for their employees. This is being phased in over the next 4 years and the date it becomes effective for you depends on the size of your workforce. Any potential purchaser knows this, and will expect you to at least be aware of the changes afoot and potential costs, and ideally have started to make provision for the Act in terms of budget and structure.

The EB Partnership can show you how to mitigate some of these costs, manage the changes and help you make the maximum return on the investment you will need to be making. A further benefit, is that by showing evidence that you have already made provision for this change, you can show this as a ‘known current or future cost’, rather than allow the purchaser to do their own calculation, which is unlikely to be in your best interests.

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