Take part in our new Family Business Survey and have your say! Click here
If Donald Trump’s improbable victory and the EU referendum has taught us anything (other than the ineffectiveness of prediction polls) it’s that things are ever changing.
Despite a backdrop of global instability, the number of completed merger and acquisition deals is not indicative of a crashing, or even wavering market.
Albeit, the average time to complete the process of an acquisition or sale being around nine months means that it may be too early to say what, if any, effect Brexit will have. However, the depreciation of sterling has markedly reduced the upfront cost of acquisition creating a window of opportunity for international buyers and with interest rates in the UK remaining favourably low, now is a good time to obtain funding for an acquisition.
According to BDO’s latest report, the second quarter of the year, being the first quarter since the Referendum, saw a record number of 707 M&A deals which has slowed to 578 deals in quarter three. The number of deals, however, is not out of line with recent levels and although prices have declined marginally, valuations remain strong.
The market continues to see more buyers than sellers and there is still a strong appetite for quality businesses and for a good strategic fit, buyers will continue to pay a premium.
If you, or anyone you know, is considering selling their business, now may be a good time to do so. Contact one of our Corporate Finance team to discuss this further.
If you like this article and would like our FREE updates sent straight to your inbox then subscribe to our monthly newsletterSubscribe
All content © 2015 Armstrong Watson. All Rights Reserved. Website by Simon Pighills.
Armstrong Watson LLP is a limited liability partnership registered in England and Wales, number OC415608. The registered office is 15 Victoria Place, Carlisle, CA1 1EW where a list of members is kept. Armstrong Watson LLP is regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activities. Unless otherwise indicated, either expressly or by the context, we use the word “partner” to describe a member of Armstrong Watson LLP or an employee of Armstrong Watson LLP in their capacity as such.
Armstrong Watson Audit Limited is registered to carry on audit work in the UK and Ireland by the Institute of Chartered Accountants in England and Wales. Registered as a limited company in England and Wales, number 8800970. The registered office is 15 Victoria Place, Carlisle, CA1 1EW.
Armstrong Watson Financial Planning Limited is authorised and regulated by the Financial Conduct Authority. Firm reference number 542122. Registered as a limited company in England and Wales, number 7208672. The registered office is 15 Victoria Place, Carlisle, CA1 1EW. Armstrong Watson Financial Planning & Wealth Management is a trading style of Armstrong Watson Financial Planning Limited.
Armstrong Watson Trustees Limited is a limited company registered in England and Wales, number 84495656. The registered office is 15 Victoria Place, Carlisle, CA1 1EW.