Published: 4 December 2020
A number of accountants and other professionals might have told you lately that now is a good time to accelerate a sale of your company. Simply, with tax changes expected, it will cost you more tax to sell later than it will after April 2021.
We have been warning of this for some time: -
Tax is one thing, but what is happening with prices that buyers will be willing to pay?
Buyers might be trade buyers (ones that are in business in your sector, or a complimentary one) or might be investors – often, private equity.
The latter have, a reported, £16 trillion to spend!
There is though an argument that trade buyers will pay more. They have the benefits of buying your business, but also synergies from putting two businesses together. That, plus their longer-term perspective, might appeal more than the ready cash of private equity.