Is your business landscape going to change with a new Government?

The General Election may bring yet more uncertainty for business owners, especially those who are considering when to exit their business and the tax implications of that.

So with an aging business owner population and younger business owners not wishing to employ staff but use contractors, there is the significant risk that the new Government will find the UK business economy looks quite different in the next few years.

In the UK and Republic of Ireland in 2015, there were just over 750k active companies where the average age of directors was over 56.  Roll forward to 2024 and according to data platform “Mark to Market” there are now in excess of 1.5m at that age.  Plus more than 460k of those are already aged over 66.

These businesses need to be sellable when the business owner is ready to retire.  If they don’t transition to new owners, the Chancellor may find that the tax income from our small companies decreases rapidly over the next few years.

Recent research from The Corporate Finance Network (CFN) said that 53.3% of advisers thought it was a buyer’s market and many mentioned how vendors were unrealistic about how quickly their business may sell, or its likely value.

At HGH, we experience these issues on a regular basis. Mark Grewer, a director and Corporate Finance manager says “Exit planning is essential for business owners thinking about retiring if they want to ensure a smooth process and the eventual walk-away price they desire. 

“I would encourage all business owners to seek advice soon, as you never know when you may receive that offer out of the blue and need to be ready to make the most of this interest”.

The new Government will certainly be hoping that more deals are done and these small companies and employers don’t leave our local economic landscape for good.

As part of The Corporate Finance Network, we have access to the highest quality of research and market-leading tools to support you as you plan for your own transition.

Whether you intend that to be in the next couple of years or in 20 years, it’s important to plan ahead so that the process is as smooth as possible and provides you with the outcome you’d like.

Download this guide for information about building towards a Smooth Exit for Owner Managed Businesses. When you are ready to speak to us about your own plans for exit, please do not hesitate to get in touch.

Need help? Get in touch

Should you require any further information or have a simple question we are only a phone call away. Please call us on 01904 655202, or email enquiries@hghyork.co.uk