Post-Brexit Benefits for Mergers and Acquisitions
Irrespective of the outcome and the eventual deal Britain strikes with the EU, there will be greater uncertainty for businesses in the near-term.
So what and how will this affect the M&A sector?
History shows us that turbulent times economically, politically and socially produce a short term drop in investment and a period of re-appraisal, followed not so remarkably by a resumption in activity.
With interest rates low – and set to remain so for the foreseeable future – investment capital will continue to seek a good return based on a careful rebalancing of risk and reward in equity markets.
Those companies that can demonstrate a history of resilient profitability and a vision that will deliver sustainable growth irrespective of market trends will always attract investment capital. And there is no shortage of investment capital.
The challenge for businesses seeking an exit will be to look even more carefully to define the value drivers in their operations, and the reduced risk that can be liberated from a more comprehensive and verifiable history of financial and strategic performance.
Those companies whose brand propositions are more resistant to price competition will continue to realise good deal values.
The ability for acquirers to identify new synergistic opportunities from deals, particularly on a pan-European basis, will be a key determinant of M&A activity in the coming years.
As change always tends to liberate opportunities, and as risk will continue to deliver rewards, greater strategic clarity will separate the acquisitive winners from the inert losers.
So for companies with a good business model who can demonstrate the value growth and scalability that a suitable acquirer can build on, now is a good time to consider your business exit.
Talk to us today about how Benchmark International can guide you through the business sale process and help you avoid common pitfalls, as well as ensuring your goals and objectives for sale or growth are met.