Blog
Appetite for buying and selling businesses returned in 2010
January 19th 2011
Appetite in the market for buying and selling businesses returned with some considerable force in 2010, particularly during the second half of the year. Strategic Corporate Finance saw an increase in deal activity during this time far greater than at any other time in the last ten years.
Larger, well-funded corporates are actively seeking new acquisition opportunities – they have seen fewer opportunities during the recession and are now keen to find quality acquisitions to fulfil their growth plans. We have also recently seen a real appetite for UK acquisitions by large international purchasers.
In some instances over recent months we have experienced aggressive appetite from private equity investors who are keen to get involved in high quality opportunities.
Management buy-outs still prevent some challenges to fund in the current climate although funding is now available for the right deals.
The recent changes to entrepreneurs’ relief has resulted in a low, and therefore highly attractive, tax regime for most shareholders selling a small or medium sized company, with many able to achieve a tax rate of only 10% on the first £5 million of their gain.
Whether or not 2011 will be a good time to sell is clearly dependent on individual circumstances, however if you have a business which has performed well over the last few years despite the recession, then it may certainly be well worth your while considering it.
Given the uplift in corporate deal activity that we have seen recently, the low and stable tax regime and a re-invigorated appetite for deal making in the market, we have every confidence that 2011 will be a good year for corporate activity.
