If Labor wins the next general election, many small business owners in the UK will either close their businesses or try to sell them.
This is the view of leading business advisor Paul Fosden based on the conclusions of a survey conducted by the wealth manager Evelyn Partners.
The survey reveals that two-thirds of British companies with a turnover of at least £5m are already preparing plans to exit their company should Labor win. Two out of five landlords surveyed plan to sell or wind down their business within the next year. Nearly one in four business owners said they had accelerated those plans in the past year.
Business consultant Paul Fosden from Corporate Adviser, who advises companies on succession planning, said: “Despite Rishi Sunak’s determination to return the UK government to a more rational and focused agenda, he appears to be constantly troubled by controversy and infighting within his own party.
Latest news that Boris Johnson has resigned as MP With many of his supporters in parliament behind them they have caused another small crisis for the prime minister as he struggles to steady the ship and head towards recovery. This is of course great news for Labor who are leading the streets in the polls and appear to be well on their way to achieving a majority in next year’s election.”
He added: “Concerns about a change of government and potential tax hikes were the most common reasons among those rushing through plans to sell or winding down their businesses, according to 26% of respondents. However, businesses rushing to sell should be wary of selling too cheap.” , a decision they could regret for the rest of their lives.The sale process must be properly planned so that the owners achieve the best possible price for their company and come up with a fair reward for their lifelong labor.
Statistics show that nearly half of planned business sales will fail, often at the last stage once the seller has incurred significant legal and accounting costs. One of the most common reasons a deal falls apart is lack of preparation, particularly in terms of due diligence on the part of the buyer.
When we work with a vendor, we look at all aspects of the business such as recruitment, contracts, systems, sales and marketing, and much more. We can also assist with actual price negotiations as having a third party involved can take away some of the emotions involved in selling a business. We aim to make sure that clients get maximum rewards for the hard work they have put into their companies.”
Any business owner considering selling their business can speak to a corporate advisor for a confidential, non-binding conversation about their requirements.