The awarding winning team of experts at Salhan Accountants in Birmingham have said that owners and shareholders were concerned about the latest data from the Office for National Statistics (ONS), which shows that the value of company sales have fallen during the latest quarter.
The ONS figures for April to June 2018 showed that the overall value of domestic mergers and acquisitions (M&A) fell to £4 billion from £6 billion– a decline in M&A activity of 33 per cent. This data suggests a longer-term trend of decline in M&A activity in the UK, with both the value and frequency of sales falling.
The recent drop off in M&A activity in the UK is likely the result of growing uncertainty around a number of issues, including the general state of the economy.
This more cautious approach by both domestic and international buyers is pushing down the value of deals and as such owners and shareholders of UK companies need to carefully review their business’s value to ensure there is no shortfall in their future plans.
Salhan Accountants recognises that many business owners and shareholders may be relying on their company’s sale as a nest egg for their retirement and is advising them on how they can increase its value.
The firm regularly recommends to clients that they prepare their businesses for sale at least five years ahead of any final deal to maximise the sale price and minimise potential tax liabilities.
By planning well in advance there is much that can be done to improve an owner’s chances of getting the sale price they desire or even increase the value of the business above their expectations.
Accountants in Birmingham
During the planning stages of a company sale Salhan Accountants in Birmingham can help with:
- Improving key performance indicators
- The selling off of unprofitable activities
- Developing a senior management team
- Increasing the profitability of a business
Its Corporate Finance specialists are experts in finding the right buyer for businesses and has helped clients from a wide range of sectors achieve their goals.
Despite the recent data from ONS suggesting a downward trend in transaction values, this does not mean that owners should resign themselves to receiving less for the business they have worked so hard to build.
Salhan Accountants stands alongside owners throughout their sale to help negotiate the best price and structure the best deal possible. Failing to plan ahead could lead to a significant tax bill and a delayed sale.
The firm’s tax team can also help owners and shareholders post-sale to help them reduce their liabilities through careful tax planning and the use of incentives, such as Entrepreneur’s relief.
If you are considering selling your business please contact our team in Birmingham, who can help you make the most of your next business sale.
