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Time to revisit old resolutions

 

Posted on 13 January 2014

The extended Christmas and New Year break often allows business owners the time and space to look objectively at their business and personal objectives; something hard to accomplish during the normal “fire fighting” that goes on for much of the year.

Many business owners may well have set a New Year Resolution to sell their business some years ago, only to find their plans foiled by the global recession.  Many thought (or hoped) the recession would be short-lived and that M & A activity and prices would quickly bounce back; unfortunately significant improvement has only shown itself recently. 

It’s been a long wait but it seems the tide has turned and it may well be appropriate to review those old New Year resolutions and reconsider an exit in 2014.  This is based on some promising recent observations, including:

  • Some of the “feel good” factor has returned
  • M & A activity began to increase towards the end of 2013
  • Corporate orders, sales and profit projections are being revised upwards
  • Interest rates remain low, employment is increasing and inflation is steady
  • Many potential buyers will be returning to the market with low, or no, borrowings
  • Capital gains tax remains as benign as ever.

A well run business in any sector is nearly always saleable, if not to a UK buyer then to the increasingly large range of foreign buyers.  Smith Cooper’s specialist Corporate Finance team would be pleased to assist in assessing the prospects of a sale.

If the owner or the business isn’t ready just yet, now would be a good time to resolve to shape the business for sale by looking at key matters such as:

  • Considering sale options and timing;
  • Getting an indicative valuation;
  • Obtaining guidance to make the business more attractive by; say, strengthening the management team or Reducing customer/product dependence or maximising short term profit/cash.

Smith Cooper can assist with all of these aspects and more.  Please get in touch with one of our Corporate Finance team for further information.

 

 

 

 

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