We are often asked – ‘Is now the right time to sell my business?’, and despite a relative slow down in M&A activity in 2023 due to a range of economic challenges, including high inflation and elevated interest rates which impacted business confidence and activity, this year we have seen headwinds ease. At PM+M, we are not seeing a slowdown in activity, in fact, for us, the market is looking increasingly buoyant.
The new Labour government appears to be offering political stability, inflation is at or around 2% and interest rates have just begun to reduce, implying that investor and trade buyer appetite will soon return, especially in the context of international M&A where interest in UK acquisitions remains strong.
A potential concern, in the near future, however, is the rumoured increase to Capital Gains Tax which could be announced in the Autumn Budget. Currently, there is a high perceived risk that the government will increase these rates, and the knock-on effect could be significant for business owners looking to exit, due to the increased risk of a mismatch between buyer and seller price expectations that a CGT increase will create. When, and if, this will be implemented is yet to be seen.
If you are considering selling your business, we can still confidently say that good businesses are still selling for good prices, despite the lingering uncertainty in the market. Ultimately, there is nothing sufficiently unusual in the current external environment, both politically and economically, which would prevent you from achieving the successful sale you have worked hard to achieve.
If now is the right time for you, speak to a corporate finance adviser, talk through your plans, let them absorb the emotion that comes with starting the journey of a business sale, – whilst you look forward and make plans for the future.
Arrange a free, confidential meeting by calling us on 01254 679131 or visiting www.pmm.co.uk.
