We have only just returned from our Christmas break and already we have received enquiries from business owners looking to assess whether or not now is the right time to consider selling – they may have been influenced by Denis O’Brien’s recent Irish Times article.
No doubt people will have been giving some thought to the future direction of their business during the Christmas break – each year end is always a useful time for reflection and planning for the future. It has been widely reported that transactions last year were at times high, driven in no small part by availability of capital to fund acquisitions.
Some SME owner managers may be fearful of “What will occupy my time if I no longer have to work?” – the lockdowns over the last period of time have inadvertently allowed certain business owners to experience downtime and some would say it has prompted them to reassess a change of lifestyle.
The first question we are always asked is “What is the Company worth?”
We are members of UK200Group, a professional service group of Chartered Accountants with links throughout the UK and Internationally. We serve on their Corporate Finance panel.
Each year the group contributes data to assist in the preparation of an SME Valuation Index which is based on actual transactions which have completed in the period.
The latest Index, published in November 2021, indicates a recovery of the valuation multiples to pre-pandemic levels and EBITDA multiples of prices which were achieved.
However, the headline multiple should not on its own be the deciding factor.
Business owners contemplating sale need to have an awareness of How Much is Enough?
We have helped clients to assess such decisions using a combination of our Corporate Finance, Tax and Financial Planning services to maximise the best outcome for after-tax sales proceeds in the hands of individuals.
If you are considering selling, now may be the right time or indeed if you would like to discuss obtaining a valuation for your business we would be delighted to assist.
For more information, or an initial conversation, please contact our advisory team: