BREXIT: WHAT COULD IT MEAN FOR
BUSINESS SALES & ACQUISITIONS?

Now that the democratic process has moved to Brexit, business people will now do what they do best – adapt and thrive.

For every threat there is an opportunity and business owners are very, very good at maximising opportunities.

As a nation, we have always been excellent traders and these business principles will serve us well.

Once new trade deals are struck outside of the EU, which we can do quicker and more effectively for ourselves, there will be a knock-on effect for British business – across all industry sectors.

The world is now one large Global market with English the language of business. Accounting principles developed in the UK are used the world over to harmonise business language. This is why I believe, in time, we will become stronger.

Whatever your thoughts or opinions, it is now time to re-focus and plan ahead.

The imperatives of business (growth, profits, market share, innovation etc.) are still the same. Firms will still want to buy a business.

Therefore, I believe that growth through mergers and acquisitions (M&A) will continue as long as funding is available.

This is why the Bank of England has clearly stated that bank liquidity is much stronger than in 2008 when the banking crisis hit.

Similarly, business owners will have their own imperatives (divestment, retirement, health, lack of succession, expiry of lease, latent need for capital investment, etc.) when selling the business.

Brexit will not change any of these imperatives – whether buying, selling or merging.

This opinion is supported by factual evidence. Despite the referendum, the number of deals announced so far in 2016 is 11.8% up. Enquiries from those looking to buy a business are 16.7% up on last year.

The favourable tax regime for business owners continues with Entrepreneur’s Relief at around 10%. This will certainly continue to drive business sales for those who wish to sell the business.

So there we have it, businesses owners have, in recent times, had to contend with numerous economic and financial fluctuations, including recession, Banking crisis, Euro crisis, falling oil prices. As a result, we are agile, resilient, tough and forward thinking.

My prediction is that M&A activity within the UK will remain largely unaffected.

Of course, any uncertainty is bad for business so Government needs to build confidence in the future and the media coverage needs to be better balanced.

The only thing that is certain is that the future will be different.

Sometimes ‘different’ is better and I believe, in time, Brexit will lead to a prosperous future for UK plc.

When we chose Kingswood to sell our business we believed that their simple, easy to understand proposition to sell our business “a better way” was just what we wanted.This is exactly how it work out with professional support from beginning to end. And the fees were exactly as quoted!

I would use Paul Holohan and his team at Kingswood again without question.


Bob Hanks