As a result, corporate finance advisers, tax specialists and wealth managers are reporting increased activity from owners looking to complete business sales sooner rather than later. Many founders are concerned that any future government could introduce CGT changes in their first Budget, making early action a sensible risk-management strategy.
The trend is particularly evident among business owners considering Employee Ownership Trusts (EOTs), trade sales and management buyouts. While commercial readiness and buyer demand remain the primary drivers of transaction timing, tax uncertainty is increasingly influencing decision-making.
Investors are also reviewing portfolios and crystallising gains where appropriate. History shows that significant increases in CGT can alter taxpayer behaviour, with many individuals accelerating disposals before changes take effect.
However, advisers caution against letting tax become the sole driver of a sale. A poorly prepared transaction can destroy far more value than any potential tax saving. Business owners should therefore focus on securing the right buyer, achieving a strong valuation and ensuring a successful completion, while remaining mindful of potential future tax changes.
For many entrepreneurs, the message is clear: if an exit is already under consideration in the next few years, now may be the time to review options and assess whether bringing plans forward could preserve shareholder value.
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With 30 years’ experience of delivering M&A transactions, Avondale can help prepare your business for a successful exit. If you would like more information about Avondale's exit strategy services or case studies on our recent M&A deals, please visit our website at https://avondale.co.uk. Alternatively, if you would like a free consultation with one of Avondale’s experienced M&A advisors, please call Avondale on +44 (0)20 7788 8250, email us at av@avondale.co.uk or fill out the attached form to arrange a free consultation to discuss your ‘perfect’ business sale.
This article has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for any specific tax, legal or accounting advice. Regulated advice bespoke to your circumstances is essential
