Maximising value is crucial when selling a business in post-budget Britain.
Right now, there’s a flurry of activity in the business sales market, ahead of next week’s much-anticipated budget, with a significant number of company owners pushing to accelerate deal completions, or failing that, aiming to secure transaction certainty ahead of any announcements that might apply, as rumoured, around April 2025.
Life, death, taxes are a fact of life and whilst it is now too late to ensure a completion by end March, the uncertainty about tax changes is disruptive and has left business owners undecided about how and when to exit their businesses.
So, taking a moment to reflect on the post-budget landscape, in relation to selling a business, it is worth considering three key points:
- Acquisitions are a key driver of business and therefore economic growth.
- There is significant pent-up demand for good businesses, particularly from financial investors: during H1 2024 “M&A involving a UK target has more than doubled and now accounts for the highest share of global M&A in three years…” (source: Deals Intelligence at LSEG)
- Well prepared businesses are the most likely to sell and achieve a premium price.
The adage that ‘preparation is essential’ applies doubly in light of rumoured Budget changes, whether starting a sale process or reacting to speculative offers, being well-prepared is essential. In particular, should there be a flood of businesses coming on to the market, well prepared companies will be the most successful.
Mike Whittle, Managing Director of EvolutionCBS emphasises the importance of preparing well for a sale: “Getting your plan ready sometime in advance, perhaps by utilising our Valuation Service, understanding your options and likely outcomes, and being in a position to optimise your eventual sale will enable you to tweak your approach when major legislative or economic changes happen.
Without clear goals and thorough preparation, vendors are liable to waste both time and money. Understanding exactly what a company is worth will be an invaluable target for both vendors and advisors alike.”
The saying “he who aims at nothing is bound to hit it…” aptly applies in the current deal-making environment. Consequently, understanding your options, likely valuation range and areas within your business that you should focus on and develop is crucial. This will help in establishing a potential timeline and enable you to recognise the impact of any legislative changes on your plan.
EvolutionCBS offers a bespoke Business Valuation service, designed to provide a comprehensive and clear answer to the question of valuation, leaving business owners in no doubt as to where the likely range of valuation for their company could be in today’s market.
Our Research Team gathers and analyses a wide range of data relating to recent transactions in a variety of sectors and can provide ranges of multiples, to provide vendors critical insights to help develop and improve the likelihood of success when a company eventually goes to market.
Irrespective of any announcements by the Chancellor of the Exchequer, proactive acquirers and investors will continue to seek out the best possible companies to acquire. By taking preparatory action now owners and shareholders can be certain of maximising the value of any exit.
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As a long-established premium provider of business sale advisory services to UK businesses, EvolutionCBS offers business owners a complimentary and confidential discussion on how their specific objectives could be met and provides them with pragmatic, practical advice on how to begin preparing both themselves and their businesses for future sale or investment.
EvolutionCBS works with owners of UK businesses in any sector, finding buyers from around the world through highly targeted research and supporting clients with dedicated Director-led teams, at every stage of their journey to a successful sale or investment.
If you are an owner or shareholder of a business and would like a no-obligation consultation on the sale of all or part of your business, please email: info@evolutioncbs.co.uk or contact us on Tel: 0118 959 8224.