With the countdown to the UK’s Brexit negotiations well under way, a slowdown in the UK business Merger & Acquisition (M&A) activity was widely forecast. Recently released figures show that overall deal values are down significantly compared with 2015 activity but, as always, these figures are hugely skewed by reduced big corporate activity.
For the Owner Managed Business world, there’s been much less of a reaction. This may, in part, be down to the greater number of options open to private business’ owners. There have been over 50 private equity transactions so far this calendar year, including 10 since the Brexit vote itself. Whilst unreported statistically, we have also seen a noticeable increase in management buy-out (or similar) activity. Steven Janes (Corporate Finance Director) comments:
“From what we are seeing, there is undoubtedly a growing desire amongst OMB stakeholders to realise some part of their value pre-Brexit realities, with an element of “de-risking” certainly a key current consideration.”
With this consistently in mind, Magma Corporate Finance have been advising clients on the following since the Brexit vote:
- Outright sales
- Private Equity/VC investment
- Vendor financed Management Buy Outs
- Passing the family business to the next generation
- Cashing out some value, but staying involved
- Business Restructurings
Working with Magma’s market leading tax team, all such options have inevitably been achieved with valuable tax efficiency too.
To consider your options, or just hear more about what we’re doing, do not hesitate to contact Mark Tuckwell, Will Lodder or Steven Janes on 01788 539000.