If you have been thinking about selling your business, but have been unsure if the financial climate would provide a healthy environment in which to sell, then 2015 may just be your year.
The volume of deals being transacted is on the rise, as is the value of these deals. This can be seen on both a local and national level and this trend has been recognised by our Client Managers, who have seen first hand the rise in mergers and acquisitions.
Let’s take a look at what is causing this spike in deal activity:
- Banks are lending again
There is a growing willingness for banks to lend money to solid businesses seeking to grow through acquisition.
- Private Equity Firms’ growing funds
Private Equity Firms have been putting aside money to use when expansion possibilities arise, they now have significant funds to invest, and it seems many are investing in SME (small medium enterprise) sector.
- Supply and demand
Lower levels of transactions were seen during the credit crisis and now there is a high demand for acquisition, as well as a high supply of business owners who are now seeing it as the right time to sell.
- Rich businesses, low interest rates
Cash rich businesses are earning low interest rates, so are seeking acquisitions as a method of improving their return on excess cash.
- Entrepreneurs’ Relief Regime
The current Entrepreneur’s Relief Regime enables many businesses to benefit from a 10% tax rate on the sale of the business. This is in effect until at least the general election 2015.
All these factors amalgamate to create a healthy, buoyant environment that is conducive to the transaction of businesses. If selling your business is something you wish to do, or you simply what find out more about the process, then get in touch. We have a vast experience in this area and can put you in touch with investors or potential buyers. Over the years, we have been involved in the sale of hundreds of businesses and can offer you all the advice and support you need to handle what can seem like a very daunting process.
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