Can I sell my business after taking a hit from Covid-19?
January 26, 2021
What happens to business value?
As a business owner you may be contemplating your future at a time when seismic changes are occurring within the UK economy. Do you sell up now or wait for trading to improve?
The financial climate is likely to remain uncertain for some time yet, it may seem strange to consider selling a business, yet sales continue to complete within the constraints of social distancing and an expected increase in capital gains tax seems to be a motivating factor.
Substantial increases in tax on the proceeds of a business sale are expected in the next budget. It is therefore prudent to understand whether you would be better off selling now before any rise in capital gains tax or to start planning for a future sale by understanding the current and potential value of your business.
In order for business owners to consider attempting a sale now or plan for an exit in the future it is important to understand:
- What is the likely market value pre and post Covid-19?
- The likelihood of achieving a sale at an acceptable price
- Are there measures that can be taken to bolster value?
- What might the impact of any future taxation policies put in place by HMRC be?
Valuing your business
Opus Hyde House Corporate Finance is able to offer you a free consultation with a Corporate Finance expert in order to undertake an initial fact find and provide advice on all of the points above.
The outcome will be an understanding of:
- The potential EBITDA multiples currently applied within specific business sectors
- Any potential loss or gain in value during the period of interruption
- The types of buyers currently active and structures available
- How any changes in Entrepreneur’s Relief and Capital Gains Tax at the next budget may impact the net proceeds