We are delighted to have bolstered our Midlands team with the appointment of a new regional partner covering Worcestershire, Gloucestershire, and Herefordshire.
Having worked at senior management and board level, Simon Glover brings a wealth of knowledge to the franchise role including experience of business sales, acquisitions, and succession planning.
Simon set up his first stationery business in 1996 at the age of 26, selling a range of items from a catalogue. He then moved into the printing industry and guided his company through many changes including the big leap forward into large format and signage.
A combination of organic growth and shrewd acquisitions ensured the business grew from start-up to more than £4 million. Since selling the company five years ago, Simon has focused on sharpening his skills as a sales and marketing consultant and has advised on many successful exits and acquisitions.
“As soon as I saw the franchise had become available, I thought it was perfect for me,” he said.
“It was a massive leap of faith but I’m really loving doing this role full-time and sharing my experience of the joys and potential pitfalls of selling a business.”
If you would like to connect with Simon, you can reach him on simon.glover@business-partnership.com(Opens new window) or connect on Linkedin.
We have boosted our operation in the North of England with the appointment of a new regional partner for West Yorkshire.
Leeds-based Philip Drazen (above) brings more than 35 years’ experience in advising companies on their route to exit to his new role. He will be assisted by business partners Nigel (right) and Tom Jones, who have worked in the refrigeration and air conditioning industry for over three decades and have considerable knowledge of owning, selling and buying businesses.
A former managing partner of a regional law firm, Mr Drazen is a well-known and respected figure in West Yorkshire and boasts a vast network of connections through his successful and continuing Business Exposure Groups and Entrepreneurs Club ventures.
“I’ve sold businesses for the last 22 years but have never done it with the support, infrastructure and database that Business Partnership provide as one of the largest independent companies in the sector,” he said.
Mr Drazen, who will be using his skills to focus on SME business to business sales, including traditional and tech companies, said that the pandemic has resulted in business owners falling into one of two camps.
“Many people have been re-energised as they have seen competitors disappear and are now planning to grow by acquiring businesses. However, there are a significant percentage who have re-evaluated their priorities and are now keen to sell. Both present myself and Business Partnership with lots of opportunities to guide them through a difficult and emotional process,” he added.
We are delighted to introduce Simon Tomkins as out latest Regional Partner to join us at Business Partnership.
Simon brings 30 years of sales experience to a rapidly expanding team of specialists spanning the UK from Devon to the Scottish Highlands.
Initially employed by a franchise operator, he moved to a multinational print hardware supplier before launching his own company in the same sector 17 years ago.
Based in Pulborough, first encountered Business Partnership while searching for a new business to buy and was impressed by their commitment to guiding buyers and sellers through the process and providing all the information both parties require.
“When the opportunity arose to join Business Partnership as a broker, I had evaluated many businesses from the perspective of a potential buyer and knew what I valued and what I didn’t,” he said.
“My experience and credibility in running a successful business will bring other skills to my new role, allowing me to meet the expectations of both sellers and buyers and manage sales professionally.”
Simon covers the Brighton, Chichester and Horsham areas on the south coast, so if you need some advice on the value of your business or are considering wither a sale is the right thing, get in touch.
simon.tomkins@business-partnership.com
The staycation saved the summer for many of us in 2020 and with the uncertainty caused by COVID-19 set to continue, it looks like summer 2021 could be a big year for the tourism industry in the UK. Vaccinations should enable restrictions to be eased for many countries during the summer, but with the risk of quarantine and changing international guidelines, it is likely that more people will be holidaying closer to home.
Improving Prospects for Tourism and Hospitality in Scotland
Tourism and hospitality were some of the hardest hit sectors during 2020 but they could soon be leading the way to recovery in Scotland. The social distancing measures that so many businesses have put in place over the last year will enable them to take advantage as soon as the weather warms up and restrictions start to ease. The Scottish government is prioritising tourism in its recovery plans and has a longer term strategy in place for building skills, improving transport, and ensuring sustainability in the sector. Visitor numbers are expected to be up for summer 2021, giving businesses across Scotland the chance to recover from the difficult months we have all endured.
Touring the NC500 in 2021
One of the best examples of how Scotland is preparing for a better 2021 is the North Coast 500 route. The NC500 is a 516 mile scenic route taking travellers in a loop around the Highlands from Inverness. Since its launch in 2015, the NC500 has generated £22.89 million for the Scottish economy and helped to create 179 jobs. Many hospitality businesses along the loop have also benefitted from increased visitor numbers. Businesses can pay to be listed on the official NC500 website, gain access to the initiative’s more than 150,000 social media followers, and are able to take advantage of various marketing and other opportunities. The scheme has been particularly praised for the support it has provided to businesses during COVID-19, with a 90% satisfaction rating from business owners.
The continued support provided by the NC500 this year should help these businesses to make a stronger recovery. In addition to providing advice and marketing opportunities, the NC500 has attracted a large audience and encouraged them to follow the route for themselves. Of those who had to cancel their plans to visit in 2020, about 75% intend to come during this year instead. British tourists are particularly likely to visit due to increased awareness of destinations in the UK and reluctance to plan holidays abroad. Good publicity from The Grand Tour putting the route on TV will help to draw people to the area, but the dramatic changes we’ve been through during 2020 have also had an effect. Being forced to look closer to home has left many people with a greater appreciation of the beauty, culture, and uniqueness of these regions.
Investing in Scottish Hospitality
The expected rise in visitors to Scotland will have a positive impact on many businesses this year and beyond. The ongoing support from the Scottish government and initiatives such as the NC500 will help the tourism and hospitality sectors to bounce back from their most difficult year. As businesses recover and business owners focus on the future, this should help to reinvigorate the market with increased demand. More buyers will be looking to invest in tourism and hospitality businesses in Scotland in order to take advantage of the growing interest in visiting destinations such as Inverness and in touring spectacular regions like the Highlands. The next few years will show how strongly the Scottish hospitality industry can recover.
If you are looking to invest in a hospitality business or purchase any other kind of business contact Simon or your local office for support.
References:
Iain McCoo, a board level finance professional, brings 30 years’ experience with global investment banks Lehman Brothers, Credit Suisse and Morgan Stanley and more recently pension and wealth planning sector know-how to his new role supporting business buyers and sellers in Romford and Southend-on-Sea.
Belfast-born Iain said: “After many years spent travelling with my job, I decided to step off the corporate treadmill and look for a new business to apply my skills to.
“Business Partnership were a natural fit as they share my values of trust, honesty, openness and transparency. I’m delighted to be joining the team and using my global experience and local knowledge to help clients achieve their goals.
“Having been involved in acquisitions and disposals, not all of which ran smoothly, I understand the potential pitfalls and what is required on all sides to overcome any obstacles. Communication and keeping a cool head are vital,” he added.
Iain spent his formative years in South Africa and has built and restructured businesses in the UK, Brazil and India.
When two businesses have the potential to go hand in hand, it makes perfect sense for them to establish a partnership that has practical value and benefits all involved. That’s why business sales experts Business Partnership have teamed up with coaching specialists Business Doctors in a collaboration to support SME business owners towards an exceptional exit.
Business Doctors specialize in delivering strategic advice and guidance to SME’s who are in need of support from experienced consultants. Passionate about giving something back, Business Doctors provide SME’s with vital services to aid their development. Some of the services they provide include strategic planning, fund raising and building business value – a service that stood out to Business Partnership, the business brokers.
When it comes to building business value, Business Partnership understands its importance, after all, they deal with buyers every day and understand what they look at when evaluating a purchase. BP’s primary focus is business sales, undertaking three roles for their clients who are looking to sell: valuations, acquisitions and business sales.
Paul Dodgshon, a Business Partnership franchisee went on to say “Our issue is that as franchisees, our focus is on business sales. A lot of the business owners we speak to are not quite ready for sale and need some coaching support to build their business value. Therefore, when we discovered that Business Doctors use the same Value Builder System within their coaching toolkit, it made sense to collaborate”
Matt Levington, Co-Founder of Business Doctors says: “We had exactly the opposite situation. Our franchisees work with some remarkable business owners throughout the UK to grow robust and profitable businesses, yet when a business owner wants to move on to something different or retire, we couldn’t’ help.”
The service providing a platform for both companies to work together is Value Builder, a tool designed to assess how valuable a business currently is. SME’s are provided with a benchmark score that enables them to evaluate their business and whether it’s ready to sell.
On the Value Builder collaboration, Business Partnership Chairman, Alistair Glaze, says that Business Partnership have been using the system “as part of their valuation and sales process for nearly a decade. It’s a fantastic system which our franchisees incorporate into their toolkit of knowledge when valuing and selling businesses.” Through the new collaboration with Business Doctors, Business Partnership clients’ looking to sell can be referred to an experienced consultant with the knowledge to increase SME value.
Business Doctors and Business Partnership have over 50 franchisees located from Inverness to Southampton and all places in between. This collaboration allows business owners to seamlessly step between brands that use a common language as their business matures.
“Knowing that a business will come to me through Business Doctors, having been professionally coached to a shared framework means it will have sound foundations, robust systems in place and be profitable. I know from the outset that such a business is more attractive to buyers and will achieve a higher sales multiple because of that work.” Says Business Partnership’s Paul Dodgshon. “Undoubtedly, the ultimate winner from this collaboration will be the business owners who benefit from this new joined-up service.”
The Covid-19 pandemic has had a huge effect on everyone in 2020, but it will continue to have longer-term effects as governments look for ways to address the unexpected spending and lost income, they have faced this year. One possibility that has been discussed in both the UK and the USA is increasing Capital Gains Tax to boost the public finances. If this goes ahead then it could have significant implications for business owners who are thinking about selling.
Capital Gains Tax Increases
Raising Capital Gains Tax is one of the options that the government is considering in order to cover the costs of the Covid-19 pandemic. A recent report from the Office for Tax Simplification (OTS) suggested that an additional £14 billion could be raised by making changes to the tax. The recommendations included doubling the rate of Capital Gains Tax to bring it in line with income tax while also reducing exemptions. While such dramatic changes to the tax system are unlikely to happen immediately, the government will be considering how they can generate more from Capital Gains Tax. Smaller changes to the system may be more likely. Increasing Capital Gains Tax, perhaps to a flat rate of 28%, has been discussed for a long time and the current situation may provide the impetus for the government to act.
How Could It Affect Your Business Sale?
Changes to Capital Gains Tax could have big implications if you are planning to sell your business. The amount you pay on capital gains is currently determined by your income, with only those earning over £50,000 a year paying the highest rate of 20%. In addition there is Entrepreneurs relief – reducing capital gains to 10% of the 1st £1m of gains on a business sale. Until March 2020 this relief was up to the first £10m, so the Government have indicated they are not afraid to change this tax.
Overall Capital gains rates are lower than for income tax because gains are often accumulated over a long period. If you’ve spent years building up your business before selling, it doesn’t make sense to tax you at the same rate as the income that you generate every year. The effects of increasing Capital Gains Tax would be particularly hard for small business owners (i.e. abolishing Entrepreneurs relief) as it could dramatically cut the cash retained when selling up – often a vital component of their pension.
Is Now the Right Time to Sell Your Business?
The risk of an increase in Capital Gains Tax could mean that it is better to sell your business now rather than to wait until the rates rise. However, it is unclear when or if the Government will increase Capital Gains Tax, so this shouldn’t be the only factor you consider, especially if you weren’t planning to sell for at least a few years – the tax tail should not wag the commercial dog. Indeed, it could be better to wait and risk paying more in taxes if you increase the value of your business over the next few years, as long as the value growth outweighs any increase in taxes.
It is also worth considering what you will be doing with the proceeds. An increase in Capital Gains Taxes could also affect any investments you’re planning to make in the future, as you will pay tax on the profits you make from these too.
In conclusion, whilst an increase in Capital Gains Tax could be on the cards, which could mean selling your business now rather than later is better, it’s important to look at the bigger picture of what your business could be worth in the future.
Fortunately, you are not alone. At Business Partnership we can help you understand the current value of your business and what it could be worth in a few years, to help you judge this vital decision.
You can either take one of our Value Builder Scores or speak to your local partner – just enter your postcode here and we will do the rest?
Business Partnership have welcomed Simon Fraser as their regional partner for Perth, Highlands and Islands.
An experienced business broker, Simon joins the franchise to build on his previous role selling businesses. Born and bred in Inverness, he has extensive local market knowledge, including many years’ experience in commercial lending and finance.
“I bring to my clients the benefit of having worked with them as their bank manager and seeing first-hand the challenges and opportunities that small businesses in the north of Scotland face,” said Simon.
“I’ve always had an ambition to run my own business and provide an independent future for me and my young family. However, like so many people, I lost my job during the pandemic. The timing seemed to be pushing me to find something for myself and then it was a matter of finding the right opportunity.”
A conversation with Business Partnership started when a close family member sold their business with the help of the Glasgow office and Mr Fraser was impressed with the service and support they received throughout the process.
“The Business Partnership team have a lot of experience and I’m looking forward to getting started. The successful exit of any business needs careful planning and preparation. If owners feel like this might be the right time to sell their business but are unsure where to start, I’d be delighted to hear from them,” he said.
Raymond Blin, Business Partnership’s partner in Glasgow, added: “When I met Simon I knew he was the ideal person to join us and I’m sure he’ll provide an excellent service to his customers.”
Who would have thought when we set down to work on 1st March that we would find ourselves here by April. Unprecedented times for business globally.
Here at Business Partnership we work with and represent businesses across all sectors, including those in retail, hospitality and leisure which have been particularly hard hit this week. Our thoughts are with you.
We understand that many businesses will be suffering right now on the back of social distancing tactics and it is important that everyone has access to the changing information released this week. So here, we have summarised the key financial support available for business along with some key contact numbers and government guides in one place.
Above all other things, we urge you to TALK.
The government have made some huge financial commitments, but they cannot cover every eventuality and specific businesses are falling between the gaps. Talk to HRMC, you banks, you local authorities, you insurance companies, you staff. This is a changing situation and not all the detail has been set. Keep talking to the relevant contacts for your business but have patience, they are going to be busy.
The Government
Top in all of this are the UK Government’s Department for Business, Energy and Industrial Strategy who have a business support line on 0300 456 3565 or email them on enquiries@businesssupporthelpline.org.
Top source for all information and updates is their website
Corporation Tax, PAYE, VAT, IR35
A lot of SMEs are going to struggle with the drop in trade due to social distancing tactics. That will put a huge strain on cashflow so paying all your taxes may not the be healthiest thing for your business right now, but you can’t avoid them altogether.
HMRC are offering Time To Pay schemes to help SMEs spread the payments and these can be arranged in a short phone call to 0800 015 9559.
HMRC are also waiving late payment penalties during this time, so speak with them on this too.
Finally the IR35 changes which were imminent have been postponed until April 2021.
Business Rates
Businesses who are in the retail, hospitality or leisure sector will now receive 100% rate relief for 12 months.
Businesses with a rateable value of between £15,000 and £51,000 who are also in the retail, hospitality or leisure sector will also receive grants of a further £25,000.
Businesses who already qualify for Small Business Rates Relief or Rural Rates Relief will be given a cash grant of £10,000 with more details of how this will be administered due next week.
Statutory Sick Pay
For SMEs with up to 250 employees the government has pledged to pay SSP for a period of 2 weeks per employee who takes time off due to coronavirus. SSP will come into effect from day 1 of sickness, not day 4.
Costs will be covered by way of a rebate but the mechanism of how this happens is still being finalised. It is not yet clear if SSP can be claimed for employees who are well, but self isolating due to members of their household being ill.
Comprehensive SSP records will need to be kept by the business, but no GP certification is required.
British Business Bank
The government have made billions of pounds available for domestic banks across the UK in order to specifically help small businesses in this crisis, although some qualifying criteria must be met. Assistance will be via lending, invoice financing and asset financing on favourable terms. All major high street banks and many others have signed up to the scheme. Full details. https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils/
Bounce Back loans are also now in place with low lending rates. Interest and repayments are suspended for the first 12 months. Again full details of the scheme will give you who can and how to apply. https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/bounce-back-loans/
Customer Invoicing
Increasing sales will potentially bring cash into your business in 3 months time, when what you may need is cash in your business now. Large PLCs have been asked to pay small businesses without delay and Morrisons have led the way on this making immediate payments to 3,000 small suppliers.
It may seem callous, but chase your debtors for immediate payment and issue invoices quickly. This is all about managing cashflow right now and you should be on top of it.
Discuss invoice discounting with your bank/finance provider. It might bring cash in now rather than waiting to be paid.
Insurance
You are looking to see if you have Business Interruption Cover in your commercial insurance policy which would cover you for loss of earnings. Then you are looking to see if you are covered for Notifiable Diseases within this.
Speak with your insurance company to find out the exact terms of your policy, what you are covered for now, and what you can retrospectively add at this point in time.
Grants & Hardship Funds
£500m have been allocated to local authorities to support vulnerable people. No further definition is yet available but it is hoped this definition will include the self-employed and small businesses in distress as well as individuals. Check your own local authority website for details, which are now starting to appear.
Universal Credit
Whilst this is a benefit for the unemployed, it is also a benefit for those on low incomes and covers those classed as self-employed.
Various restrictions on income levels and waiting times have been lifted during this time. It is likely that Jobcentre Plus, who administer the benefit, will switch to phone and online consultations only. https://www.gov.uk/contact-jobcentre-plus
Rent Holiday
Whilst announcements have been made for mortgage holidays and rent suspensions for individuals, no such announcements have been heard commercially. Bodies like the FSB, Chamber of Commerce and Institute of Directors are speaking to major landlords about the support they can offer to their SME tenants, but we wait for news.
We urge you to speak with your own landlord, open up a dialogue and discuss a compromise payment schedule.
Salaries – Coronavirus Job Retention Scheme
Under the Coronavirus job retention scheme, 80% of PAYE salaries will be covered by the government during this time for employees who have been furloughed. Those furloughed employees must not work during that time and employers can make up the additional 20% salary if they wish. Full details https://www.gov.uk/guidance/check-if-you-could-be-covered-by-the-coronavirus-job-retention-scheme
Self Employed – Income Support Scheme
Like the furlough scheme for employees, the government is committing to cover 80% of the profits of the self employed. Calculated as an average and for those self employed who have submitted tax returns for the 2018-2019 tax year. Conditions do apply and can be found here https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme
First applications for the self employed have begun to be processed. If you believe you quality but have not yet been contacted by HMRC, get in tough with them directly.
Who else can help you?
It is difficult to predict who needs what help but your own accountant is also a good place to start. They are used to dealing with HRMC and tax rebates so have a head start in navigating these new allowances.
If it is support on staff matters and employment issues that you seek, ACAS will be your starting point but there are many other recognised bodies who are disseminating the government messages on a daily basis to the public. Below are some main ones.
Federation of Small Business
https://www.fsb.org.uk/campaign/covid19.html
Institute of Directors
https://www.iod.com/news-campaigns/news/articles/COVID-19-coronavirus-advice-and-resources
ACAS
https://www.acas.org.uk/coronavirus
World Health Organisation
Don’t forget your local Chamber of Commerce and your Local Authority.
Finally, Lansberg Gersick have put together a Crisis Management Toolkit for business on the link below.
Can your business help?
If your production can be changed to manufacture medical equipment such as ventilators you can offer your services https://ventilator.herokuapp.com
If you think your business can help in other aspects visit coronavirussupport@cbi.org.uk
Business Partnership
Clearly, if you want to take this opportunity to assess your business value or discuss your plans for sale, we are happy to talk and you will find your local office details here(Opens new window).
May you all stay healthy and may all our businesses survive and then thrive when we are through the worst of this crisis.
on behalf of
Regional Partners and supporting staff
Business Partnership
Entrepreneurs Relief gives you the opportunity to reduce your Capital Gains Tax on gains stemming from the sale of things like shares, assets, leaving partnerships and LLPs, and can cut the CGT by half. If you are interested in benefitting from Entrepreneurs Relief, you may well need to seek advice from legal experts who know the law inside out and can help you satisfy legislative requirements and help you with tax planning.
A growing number of entrepreneurs are finding it is harder to claim the relief due to challenges from HMRC. We have vast experience in helping entrepreneurs overcome challenges from HMRC, and our help could be the difference between obtaining the relief and missing out. We can help you obtain relief to reduce CGT payable on share transactions, for asset sales, for trading company share sales and get the relief under employee share plans approved by HMRC.
Those who meet the requirements for the relief and wish to sell shares can reduce the effective rate of tax payable to 10%. The relief is also available on lifetime gains up to £10 million. This means you could save up to £1 million.
The flat 18% capital gains tax rate was introduced during the 2008 Budget. After this, a new scheme was created to compensate entrepreneurs who would have paid 10% tax with maximum taper relief applied when selling their businesses prior to the changes. The lifetime limit was originally £1 million on the proceeds of business sales but was eventually raised to £10 million.
The relief can be claimed when all or part of a business is sold, when shares are sold or when business assets are disposed of once the entity is no longer trading. You may be able to claim the relief if you are in a partnership, an individual, a sole trader or have shares in your own limited company. Limited companies cannot claim the relief, though certain trustees are eligible. You will need to have owned your business for at least a year prior to disposing of it or for a year before it ceased trading.
You can claim the relief through your Self-Assessment Tax Return or by completing Section A of the ER fact sheet. Any gains over the £10 million lifetime allowance will be taxed at the usual 10% CGT rate or 18% if you are a higher-rate taxpayer. You have one year following the 31st January after the year the disposal was made. This means if you made your disposal during the tax year ending in 5th April 2016, you will need to make your claim by 31st January 2018.
The legislation around Entrepreneurs Relief can be very complex, which means it’s wise to seek advice from market-leading experts who can help you take the right steps and avoid missing out on the relief. There are many circumstances which may prevent you from obtaining it, so contact us today if you suspect you are eligible but require the support of professional Entrepreneurs Relief experts.
Whether you’re selling, buying, or planning for the future, Business Partnership is here to help. Contact us today to speak with your local Regional Partner and start your journey toward success.