With Brexit just around the corner, is now a good time to sell if you own an SME?
According to the Experian Mergers and Acquisitions Report for the first half of 2018, deal volumes are down 14% but deal values are up by 37% compared to the same period in 2017 and represent the highest first half figures since 2007.
Deals in the North East are even healthier, with deal volumes up 29% on the same time in 2017.
It seems that some European businesses are keen to purchase UK companies so they can access the UK market and manufacturing capability after Brexit.
Take French company Pilote, for example, who purchased Danbury Motor Caravans of Bristol towards the end of last year. With this acquisition, they intend to continue their active growth and development in the UK. As Danbury’s accountants said, “This is ideal planning for a post-Brexit Europe”.
Added to this, the weak pound makes UK businesses great value for foreign companies and technology is increasingly taking away the difficulties traditionally associated with international mergers and acquisitions.
Another reason that an acquisition might be attractive now is to obtain capabilities as a hedge against Brexit e.g. supply chain, warehousing, import, export capabilities. It might be cheaper (and quicker) for a UK company to buy this capability from one of its suppliers, competitors or customers than to try to build it internally in the next 6 months.
You’re not likely to sell now just because of Brexit; the timing has to be right for you and your business, but it doesn’t hurt to take market conditions into account.
To find out more about selling your business, click the button below to get your personalised value-builder report.