This year has been a phenomenal year for selling businesses, with Advisors and Company Directors alike benefitting from the significant uplift in business confidence since the vaccine roll out. With the Omicron variant popping up just in time to disrupt the end of the year, here are three reasons you should be quietly confident about selling your business next year.

Firstly, there is significant appetite amongst deal makers, investors and large organisations for strategic company acquisitions that will boost growth or enable diversification. It’s worth noting that 2021 has seen the largest volume of M&A since records began and for most commentators the prediction is that this surge will continue well into 2022. (Source: https://www.refinitiv.com/perspectives/market-insights/global-ma-soars-as-acquirers-make-up-for-lost-time/).

Secondly, the mood in many organisations is to strategically deploy piles of under-utilised cash left fallow since the start of the pandemic, with company acquisitions among a raft of moves planned for next year by some of the biggest players. This ‘cash hoard’ remains a significant problem for Chief Executives and boards worldwide and presents a significant opportunity for business owners and shareholders looking to drive value on exit.

Thirdly, the UK ranked within the top 5 most attractive destinations for foreign investment, based on a variety of factors, including the relative value of the pound compared to global currencies. One could speculate that this appetite extends not only to foreign organisations keen to access UK markets, but also to multinationals with an existing footprint, keen on expansion. (Source: https://www.fm-magazine.com/news/2021/jul/uk-attractive-for-foreign-investment-despite-brexit.html).

It remains to be seen how the above trends will play out next year, not least how the record levels of cash will be invested, but significant opportunity exists for those considering M&A and is good reason to feel quietly confident when enjoying a mince pie and brandy cream this Christmas.

If you are considering a future sale of your business, why try our free online valuation service, which will provide you with a bespoke Business Valuation Report. Our valuations are derived from your business data, including financial and operational metrics, combined with data from the world’s largest provider of business valuations. Contact us today: ithomson@evolutioncbs.co.uk or 0118 959 8224.

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