HW Advises LOCAL business owners on how to cross the finish line

“With a level of uncertainty in the economy and higher interest rates, business owners may currently be reluctant to sell or buy a business. This has not affected the mergers and acquisitions market, which still remains steady, but we are also experiencing increased activity in restructuring alliances,” says Charles Whelan, Partner, HW Corporate Finance.

The seminar held at Phyllis Court Club, Henley on Thames on 1 November 2007 drew in over 40 Thames Valley business owners. It addressed some complex issues from establishing the ambitions for a business, assessing the value of a business, tailoring a business for sale and options for growth.

In addition to many years’ of HW professional expertise guest speakers from Contemplation Holdings, Jelf Group plc, Hentys LLP Solicitors, and Zeus Private Equity shared their experiences with the delegates.

Their top tips ranged from what acquirers should be looking for in a potential target company to how to approach negotiations when either buying or selling a business. They warned delegates not to take their eye off their current business and .and provided examples from their ‘chest of war stories’.

Vicky Fox, Tax Partner at HW, Chartered Accountants, gave the following advice for those contemplating selling a business. “Long-term planning is key, if you are committed to involving key employees in the business it should not be left to the last minute.

“The current tax regime is favourable for those wishing to sell shares in private companies” added Vicky. “With capital gains tax rates as low as 10% for those who take care, more proceeds are retained. Of course, we now know that the Chancellor will be increasing tax paid on business disposals to 18% from 6 April 2008. This may provide that added incentive for business owners who were think of selling to get on and sell now whilst the effective tax rate is 10%.”

The seminar certainly provoked lively debate amongst the delegates wishing to sell a business or seeking to acquire a new one – either imminently or planning further into the future.

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Date: 06-12-2007