Despite the fears that Brexit would completely demolish the British economy, the current outlook is surprisingly positive and arguably now is the perfect time to sell your business. Over the past couple of years, the sale value of businesses across the UK has only increased and continues to do so. If you are a business owner and have been considering selling your business, now is a better time than ever. Post Brexit research showed that those looking to acquire businesses were of the opinion that if a business is profitable it is as attractive as ever regardless of the current circumstance. With that in mind here are some of the top reasons why you should consider selling in 2017.
Research has suggested that in 2017 investors are more active than ever and as a result, anybody hoping to sell their business has a larger pool of potential acquirers they can negotiate with. With this increased competition it is more likely that business owners will be able to get a price they are more than happy with.
Currently, there is a government scheme is place that allows business owners to claim entrepreneurs relief tax when selling their business. This means the owners pay only 10% capital gains tax overall as opposed to the usual higher rate of 18% or 28%. If you are wanting a high return this is the time to capitalise on this.
This year the UK’s interest rates are currently at a record low of 0.25% and is holding but the Bank of England has also signalled that it could go lower. This means that buyers have an increased access to finance when looking to acquire a business. As a result of this, the marker is currently being flooded with buyers taking advantage of these rates.
With more buyers in the market, the valuation of your business will be at an all-time high. Because of the current economy entrepreneurs are struggling to secure loans to either star a business or help the growth of a new business. Banks currently look much more favourably on financing loans for business acquisitions. It is considered to be a much more secure investment if they are able to see the stable history of a business and prospects for the future.
If you are a smaller business and you have successfully stayed afloat in the last few years where the UK has experienced an extremely tough economy you are immediately more attractive to buyers. This shows potential acquirers that your business has what it takes to be successful even when the odds are against you. As the economy slowly starts to get back on its feet your business will have a massive opportunity for growth and during this time buyers are very much aware of this.
There is currently a huge pool of buyers looking to acquire a small to medium sized business that have prime locations. By acquiring these smaller businesses it helps entrepreneurs have their first secure business and it allows bigger corporate buyers to collect businesses for their portfolio. Businesses that hold particular licences and are I prime locations such as high streets are especially sought after currently.
If after reading this you are in a position where you feel like looking into selling your business is a viable option your first port of call will be to Business Transfer Company. They have everything you need in place to provide you with the right people and tools to be able to make a successful sale in 2017.