The Time is Now!
Business confidence in the South West continues to rise and is currently at a 3 year high – according to the latest (October 2021) Business Barometer from Lloyds Bank Commercial Banking. This comes on the back of steadily increasing business optimism throughout the year – something which has definitely permeated the business and corporate transfer market, where ever increasing buyer demand has led to a significant rise in transactions. In fact, the demand has reached a level whereby almost any quality business producing decent returns attracts significant immediate interest and often leads to an early sale, which is precisely our experience at Beardsley Theobalds where we specialise in the sale of businesses and companies in the industrial, commercial and services sectors.
Even more encouraging (from a business vendor’s perspective) is the fact that where businesses which have suffered at the hands of Covid-19 related restrictions, but which have recently ‘bounced back’ to at least pre-pandemic trading levels, buyers (and their advisors and lenders) are prepared in such circumstances to ignore the intervening restricted trading period! This has come as something of a pleasant surprise to many business owners who had hitherto assumed that they would have to wait a year or two, in order for their accounts to show that the ‘damage’ had been well and truly repaired, before offering their businesses for sale. Moreover, sale prices currently being achieved, due to significant and increased demand, are higher than was the case before the intervention of Covid-19!
So, current market conditions are clearly very favourable for those looking to exit their businesses – to the extent that it has to be said that there hasn’t been such a good time to sell a business since before the financial crisis in 2007/08!
written by Roger Mundy, Manging Director, Beardsley Theobalds