A no-deal Brexit means that the UK will become a non-member country with no Brexit plan in place and no transition period. We would then be out of countless arrangements covering everything from foodstuffs, other goods and data, tariffs, movement of people, to security and travel. Without a withdrawal agreement, each element would need to be agreed and given this complexity and uncertainty several business sectors are deeply worried. For both businesses and individuals, the potential impacts are numerous and cannot wholly be predicted.
In general, the referendum outcome has hurt company valuations, but the extent of this impact very much depends on the business and, in the longer-term, the ultimate Brexit scenario play-out.
In the last few years, the UK economy has grown slowly, and this has been good for business sales because trade Buyers want to acquire to increase revenues and profits. For most Sellers, business sales are mainly driven by an absence of succession, whether to family or management, and this has led to an active Buyer and Seller market.
For business owners, there is an unpredictable period ahead and some “rough weather” to endure. Things will improve in the longer term, but businesses will struggle to maintain past profits as Brexit unravels. If you are thinking of selling, then now is the time to try and find a Buyer, especially if your business is profitable. The real impact on your business of a no-deal Brexit on your business will be apparent after next year’s financial figures. You can still achieve a reasonable sale price, and the market remains buoyant.
As more and more successful deals involve an Owner staying on in the business post-sale for up to 3 years, it’s sensible to start planning now.
The author of this post-Zach Dogar has nearly 25 years’ experience as a business broker and has helped hundreds of business owners sell their business.
Zach can be contacted directly on 07912 513876 or by email firstname.lastname@example.org.
For exit strategy advice, book your free no-obligation telephone consultation and business valuation online or by calling 01865 819865.
ETS Corporate Business Brokers www.ets-corporate.com