Is now a good time for a business acquisition?

Sep 22, 2015
Author: Pete Wilmer
Pete leads the Corporate Finance offering at Hawsons, Pete specialises in advising business acquisitions and disposals, raising finance, business valuations and employee ownership trusts (EOT).
Business Planning Accountants

Is now a good time to be thinking about a business acquisition?

Over recent years the corporate acquisition market has been challenging for those wanting to complete deals. The appetite of funders to lend has been constrained and the price expectations of vendors have been relatively high as they hold on to notions conceived in the buoyant pre-2008 market. However, our experience on deals over the last twelve to eighteen months has led us to believe that the acquisitions market has now become increasingly attractive and that now is a good time to consider a business acquisition.

Why might now be a good time?

  • Good quality businesses available at realistic prices – Many business sales were deferred during the recession waiting for the economy and funding markets to improve. Owners of these businesses are now looking to sell and recent transactions have shown that vendors now have more realistic pricing expectations.
  • Funders have an appetite to lend – Banks liquidity positions are substantially improved with a strong desire to lend and at lower interest rates than have been seen for some time.
  • Preferential deal structures – There is now a general acceptance in the market place that deferred payment terms are required in order for vendors to achieve their price expectations whilst giving purchasers the confidence to invest.

How Hawsons Corporate Finance can help

At Hawsons Corporate Finance we have an experienced team of deal makers who have worked on 15 transactions with a total value of £70m over the last eighteen months, including:

Irwin Mitchell P&A deal Perrys acquisition of GK Group  Irwin Mitchell Berkeley Law

Thornhill heat exchangers ltd deal  Raveningham Holdings Limited Wild Engineering Limited

We have the flexibility to tailor our services whilst being able to offer a full deal advisory service including, identifying targets, initial approach, negotiation of terms, due diligence, tax efficient structuring and raising finance.

As well as the technical excellence you would expect as qualified chartered accountants the team also works closely with the in-house tax specialists at Hawsons and has extensive experience in both industry and corporate banking, bringing a broad perspective to our advice and service.

If you are thinking about a business acquisition please give me a call on 0114 266 7141 or email at pjw@hawsons.co.uk for a free initial meeting.

Pete Wilmer partner

Pete Wilmer heads up the firm's Corporate Finance service offering. Having worked in the corporate finance arena for many years with a national accountancy practice and with a major corporate bank, Pete has a wealth of experience and a track record of delivering first-class outcomes for clients. You can contact Pete at pjw@hawsons.co.uk or 0114 266 7141. [/author_info]