The Bank of England’s decision this lunchtime to reduce the base rate from 4.75% to 4.5% could positively influence businesses looking to expand or exit through M&A.
For buyers: lower borrowing costs may increase affordability of funding, meaning increased access to financing and potentially boosting purchasing power in M&A transactions.
For sellers: reduced rates may encourage buyer interest, leading to increased competition and potentially higher valuations. Sellers should remain mindful of possible future rate changes that could affect buyer sentiment.
Overall, this rate cut could signal improved funding conditions, offering potential advantages for both buyers and sellers. Businesses should continue to consult corporate finance professionals to understand how uncertainty in the economy could impact their M&A strategies.
Get in touch
If you would like to discuss your exit or acquisition strategy following the recent interest cut, get in touch to arrange a no-obligation, confidential discussion with corporate finance director, Stephen Robinson.
