Insights & Opinions

UK’s recessionary status rebuffed by activity in the M&A market

The Office for National Statistics has indicated that the UK has returned to a recessionary status; however activity levels within the company sale and acquisition marketplace remain bullish, with many aquirers keenly eyeing UK businesses as potential strategic acquisitions.

Favourable tax reliefs still apply to selling a business, despite Budget Day

Many business owners will welcome the announcement by George Osborne of an immediate 1% cut in the headline rate of Corporation Tax (which will reduce the level to 24% from April 2012, with a further reduction to 22% by 2013/14). This move means Britain will remain increasingly attractive to cash-rich overseas investors and acquirers[1].

Foreign acquirers keen for UK assets

In light of the banking and sovereign debt crises in Europe, the UK economy may have seen better days. However, a ray of light has been shed by overseas trade acquirers who are snapping up UK corporates and buoying mid-market mergers and acquisitions.

Technology M&A market surges

From April to June this year, the value of global technology M&A almost doubled to $52bn, up from $27bn, according to a recent Ernst & Young report.

Joe Steger, global technology transaction advisory services leader at Ernst & Young, said on the report’s findings: “New waves of innovation, especially around smart mobility, cloud computing and social networking, are now influencing the development of the entire global economy.”

Reputation drives company value

Experts claim that reputation is one of the main drivers of value in companies, calling for it to be reported as an intangible asset. Spencer Fox, MD of the Reputation Institute, says: “All FTSE-100 companies should be acknowledging the yearly change – positive or negative – in their reputations and report accordingly.”

International M&A specialist to speak in Oxford

Dr Mike Sweeting, one of the UK’s most renowned experts on buying and selling businesses, is set to show entrepreneurs in Oxford the best way to sell their companies  at a special one-off event being held early next week.

The headof partnering for international M&A specialists, BCMS Corporate, Dr Sweeting will be speaking exclusively alongside Andy Todd from Commercial Catalysts at a freeseminar which is being hosted at Science Oxford in London Place between 9am-12pm on September 16th.

Dr Sweeting, who has over 25 years of hands-on experience at the sharp end of industrial, commercial, and construction businesses, will focus on the ‘eight keys to selling your company for its maximum value’.

A Fellow of both the Institute of Directors and of the Institute of Sales and Marketing Management, he will cover key areas of the business sale process which are necessary to achieve a maximum sale price including locating the most desirable buyers, proactive selling and negotiation techniques.

Says Dr Sweeting, Head of Partnership at BCMS Corporate: “If you are a business owner or shareholder of a company with a turnover exceeding £1m in the Oxford area then this event will provide essential information for you; whether you are considering a sale now, looking at a possible sale in the next few years, or are simply curious about the value of your business.”

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