Inform Magazine

POST-ELECTION SIGNS ARE POSITIVE Dave Gardner, KBS Corporate Finance Managing Director, explains what can be expected in mid-market M&A following the General Election and how company owners can capitalise with the help of KBS.

Although early-year predictions foretold quicker progress, there are still positive signs ahead, and for better or worse the post-election period may also generate a sharp change. In particular, it has been reported that the current Capital Gains Tax rate of 20% could be increased after the election. This is prompting many UK company owners to accelerate their exit plans to avoid a potentially greater tax liability. One thing for certain is that company owners looking to sell should very much have their finger on the pulse. At KBS Corporate, we remain optimistic and are ready to help with the timing and strategy of your exit plans. Call our experts on 0161 660 9963 for a confidential discussion about how we can fulfil your company exit requirements and more information about the service we provide.

hen we looked ahead to what the short-to-medium term future held for our industry at the start of 2024, prospects were bright for a corporate finance market boost.

Financial forecasters were predicting UK interest rates would fall this year, potentially from 5.25% to 4.25%, and with global energy prices and the wholesale cost of oil beginning to drop, analysts were suggesting inflation could dip below 2% by summer. Indeed, the inflation rate had dropped to 2.3% by April, but interest had been held steady. Next thing, any imminent cuts that experts had deemed likely were delayed. So, what changed? The announcement that a General Election would take place on 4th July. While it might have been stretching reality to suggest 2024 would be an exceptional year for mid-market company sales, especially after post-COVID recovery growth in 2022 and 2023, the economic signals still indicated this could be an ideal year for company owners to proceed with an exit. With gradual 0.25% interest decreases predicted for September and November, the International Monetary Fund believes the UK’s interest rates should fall to 3.5% by the end of 2025.

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