Now that Brexit is dictating the economic outlook, what effects might the EU referendum result have for entrepreneurs and business owner-managers who may have been planning to pass on or sell the business? The vote on 23 June took many by surprise; right now the only thing that’s clear is that uncertainty characterises the future of many British businesses and their operations within the UK.
Early reports suggest that the political and economic upheaval is already manifesting itself through a decline in business investment and in the level of corporate acquisitions activity, from start-ups through mid-size businesses to more substantial companies. According to one source, the amount spent on M&A in the SME sector was down by 29% in the second quarter of 2016.
In our view, the post-Brexit climate shouldn’t deter business owners from developing a business sale strategy. However, it does mean that the planning and implementation will become more important.
To achieve the best possible outcome you should begin to plan your exit strategy and discuss options with expert advisers well in advance. We suggest you set a planned retirement date and use this as a deadline to work towards.
Magma’s Corporate Finance team can guide you on the various factors you may need to consider. If you would like to discuss contact Steven Janes on 01788 539000.